Federal, state and local governments acted quickly to assist businesses during the COVID-19 pandemic. However, because the category of “small business” is defined so broadly, stimulus money did not always reach the intended recipients. The government’s definition of small business includes firms with fewer than 500 employees — which, taken together, represent a broad collection of different types of businesses with very different needs.
In financial markets, forward contracts reflect market perception of future price dynamics. Nontransparent markets, like commercial real estate investments, lack such tools. We use a panel of NYC office leases between 2005 and 2016 to estimate a dynamic term structure of forward lease rates (rental revenues), which reflects changing expectations by tenants and landlords about future rental contract conditions.
As of 2019, salary history bans were enacted by 17 states and Puerto Rico with the stated purpose of reducing the gender pay gap. We argue that salary history bans may negatively affect wages as employers lose an informative signal of worker productivity. We empirically evaluate these laws using a large panel dataset of disaggregated wages covering all public-sector employees in 36 states and find, on average, that salary history bans lead to a 3% decrease in new-hire wages.
Financial markets reveal information which firm managers can utilize when making equity value-enhancing investment decisions. However, for firms with risky debt, such investments are not necessarily socially efficient. Despite this friction, we show that learning from prices improves investment efficiency.
Post 2020 Census population estimates covering the first fifteen months of the pandemic are analyzed. The results reveal COVID-19’s impact on the geo-demography of the state, highlight disturbing demographic trends, and raise pressing questions requiring immediate policy attention if North Carolina is to remain attractive as a place to live, work, play, and do business.
Some analysis indicates companies with diverse executive teams drive more revenue and are more likely to experience higher profits relative to their nondiverse peers, yet founding teams for both high-growth startups and the private capital groups that fund them stand in stark contrast to the U.S. working age population. Why? And why should it matter? In this week’s Kenan Insight, Kenan Institute Distinguished Fellow Emmanuel Yimfor unpacks statistics on the composition of both high-growth startups and private capital groups, explores the economic and societal implications of their lack of diversity and provides suggestions to facilitate change.
We study the relation between trade credit, asset prices, and production-network linkages. Empirically, firms extending more trade credit earn 7.6% p.a. lower risk premiums and maintain longer relationships with customers.
COVID hit North Carolina hard, with 3.1 million cases so far and over 26,000 deaths. Low-income communities in North Carolina were especially hard hit, with higher rates of COVID infections and deaths, sudden loss of jobs with little buffer, disruption of families and communities. In this paper, we conduct a quantitative assessment of COVID-19’s impact on low-income North Carolinians and specifically on a subset of lower income North Carolina counties that are served by the North Carolina Community Action Association (NCCAA).
assistance in the immediate aftermath of this extreme weather event, we document the role net migration played in recent population growth—a crucial issue in climate change policy deliberations—and outline creative strategies and investments Florida officials will have to leverage to both rebuild and create resilient communities with reputational equity that remain attractive to newcomers as well as long term residents moving forward.
Hurricane Ian destroyed property and disrupted livelihoods in some of Florida’s largest and most rapidly growing coastal and inland counties.
This paper examines how US immigration-induced labor mobility frictions affect entrepreneurship and firm monopsony. I exploit a natural experiment in the US immigration system that unexpectedly increased Green Card (GC) related job-switching frictions for Indian and Chinese immigrants in October 2005. Using matched employee-employer data from LinkedIn, I confirm that this shock reduced inter-firm employee mobility for Indian and Chinese employees.
In the wake of the COVID-19 pandemic, two large infrastructure-related bills have been enacted. The Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, provides funding for a wide range of activities including roads, rail, transit, broadband, water and electrical infrastructure.
Long depicted as a global melting pot, the United States is home to a collection of sharply divergent geographies, regions and cultures. An overlooked measure of our diversity, however, is economic. While national statistics tell a story of averages, they fail to account for the true drivers of economic expansion and contraction. It is only upon examining America’s microeconomies – our cities, towns, suburbs and rural communities – that we can begin to appreciate the myriad and complex determinants of broader U.S., and sometimes even global, economic trends.
Productivity is the single most important determinant of a society’s standard of living. But how can you gauge it, and why does it matter? In this second report from the American Growth Project, we examine the productivity levels of the 50 largest microeconomies in the United States along with how those productivity levels have shifted during the last 15 years.
To date, our work on the American Growth Project has focused on the United States’ most populous urban areas. Our previous analyses of growth and productivity in the 50 largest Extended Metropolitan Areas (EMAs) have served to illustrate the tremendous amount of economic diversity to be found within the United States, revealing stark variations in economic trends, major industries and migration patterns in the country’s largest cities. We turn now to the task of measuring and analyzing economic activity in the next largest set of EMAs: the top 100 midsize cities.
In kicking off the new year, we at the Kenan Institute want to highlight five topics we anticipate will be top of mind for business leaders and policymakers during the 12 months ahead. Although some of these challenges – such as the recession we expect – can be painful, they also present opportunities. To help you navigate this rapidly evolving economic landscape, the Kenan Institute will work to provide solutions-focused analysis on the following as well as related issues throughout 2023.
As we move into 2023, the state of the economy remains highly uncertain following a volatile year that included both strong job growth and persistent inflation. Unfortunately, our economic models don’t bear particularly glad tidings for the new year, as we expect the U.S. economy will enter a recession in the second half of 2023 or early 2024. What is more, the economic pain caused by this downturn will be felt unevenly across the country: Our work in the American Growth Project has revealed significant divergence across regional economies in the United States that is too often left out of analysis focusing on national statistics alone.
North Carolina’s phenomenal migration-driven population growth masks a troubling trend: high rates of death and dying prematurely which, left unchecked, can potentially derail the state’s economic growth and prosperity in the years ahead. On average, 246 North Carolinians died each day during the 2010s, increasing to 317 daily between April 1, 2020 and July 1, 2022. COVID-19 and the substance abuse crisis have played a major role in premature deaths of prime working age citizens of the state. Both people-based and place-based strategies and interventions are urgently needed to address the state’s death crisis.
This paper explores the ups and downs of innovation and productivity growth in the US economy and potential connections to the ups and downs of business dynamism and entrepreneurship over the last few decades.
The advent of artificial intelligence (AI) tools necessitates the development of human skills that allow workers to use these new technologies to create value that AI tools cannot on their own.