How Do Industries and Firms Respond to Changes in Local Labor Supply?
利用德国行政数据，研究当地劳动力技能结构变化如何通过工资、企业规模扩张和要素密集度调整被吸收，发现调整主要发生在企业内部，且企业进入和退出市场是重要机制。
This paper analyzes how changes in the skill mix of local labor supply are absorbed by the economy, distinguishing between three adjustment mechanisms: wages, expansion in size of those production units using the more abundant skill group more intensively, and more intensive use of the more abundant skill group within production units. We contribute to the literature by analyzing these adjustments on the firm rather than industry level, using German administrative data. We show that most adjustments occur within firms through changes in relative factor intensities and that firms entering and exiting the market are an important additional absorption mechanism.