Agenda

09 May 2022 12:15

Andreas Menzel - Why Don’t Small Firms Merge? Experimental Evidence on Information Barriers

Meeting Room 1 (San Giobbe Economics Campus) + Live streaming (ZOOM)

Andreas Menzel, Center for Economic Research and Graduate Education – Economics Institute - CERGE-EI, Prague (Czech Republic)
Why Don’t Small Firms Merge? Experimental Evidence on Information Barriers

Abstract
In a field experiment in Ghana, we document pervasive self-reported willingness of small firm owners to hire and work for other small firm owners in their city. We auction off owner-specific lists with information on other firm owners that expressed interest to work for or hire the owner, using the Becker-Degroot-Marschak method, and find that firm owners display an economically significant willingness to pay for these lists. Five months after the distribution of these potential employee (employer) lists — our conditionally random ‘treatments’ — treated firms are significantly more (less) likely to remain open. Contrary to our priors, owners do not directly hire or work for
other owners. Instead, potential employee list recipients increase labor inputs from existing workers while potential employer list recipients shed workers. Significant impacts on farming income offset firm income changes; no impacts on overall income are detected, though potential employer list recipients report significantly higher food security.

The seminar can be attended also remotely, connecting to ZOOM: https://unive.zoom.us/j/85289335331 - Meeting ID 852 8933 5331

Language

The event will be held in English

Organized by

Department of Economics (EcSeminars; CVera)

Link

https://unive.zoom.us/j/85289335331

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