Local labor match and corporate investments: Evidence from new flight routes
利用新航线开通作为自然实验，发现企业人力资本与本地劳动力越相似，投资率越高，尤其对融资受限企业影响更大，表明劳动力匹配通过降低劳动成本促进投资。
Abstract We exploit new flight connections from small cities to international airports as a quasi‐natural experiment to study the effects of local labor match on corporate investments. Using a cosine similarity of occupational makeups, we find that corporate investment rates are higher for firms with human capital profiles that are more similar to those of the local labor. The effects are more pronounced among financially constrained firms and less evident among firms with higher unionization membership and coverage. Firms with better local labor match are also more likely to downsize their employments when experiencing negative cash flow shocks. Collectively, our findings suggest that local labor match spurs corporate investments by lowering labor costs and increasing ex‐ante investment incentives.