New Facts About New Firms

Little scholarship exists on the impact of large plant openings on workers, local labor markets, and the larger economy. Partnering with one of India’s largest garment firms, this project seeks to understand the effects that new plants have on the local workforce, including gender parity. Knowing who fills jobs created at new plants and their equilibrium effects is crucial in furthering understanding of firm market power and the extent to which they have spillover effects on the larger economy. In a randomized study of firms’ location decisions, researchers collect primary data on labor market participation and wages, as well as utilizes the firm’s detailed worker and plant level data such as daily attendance and productivity. Results forthcoming.