Are Executives in Short Supply? Evidence from Death Events

S-Tier
Journal: Review of Economic Studies
Year: 2024
Volume: 91
Issue: 1
Pages: 519-559

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using exhaustive administrative data on Italian social security records, we construct measures of local labour market thickness for executives that vary by industry and location. We show that firm performance is strongly and persistently affected by executive death, but only in thin local labour markets. The new executives hired after death events in thin local labour markets have lower education levels and are more likely to be replaced. These predictions are consistent with a simple model of executive search in which market thickness determines the arrival rate of applications for executive positions.

Technical Details

RePEc Handle
repec:oup:restud:v:91:y:2024:i:1:p:519-559.
Journal Field
General
Author Count
2
Added to Database
2026-01-29