Professor Fabiano Schivardi will present the paper “Are Executives in Short Supply? Evidence from Death Events”
Using exhaustive administrative data on Italian social security records, we construct measures of local labor market tightness for executives that vary by industry and location. We then show that firm performance is negatively aected by executive
death, but only in thin local labor markets. Death events are followed by an increase in the separation rate for the other executives, in particular for those with a college degree. Consistent with the hypothesis that the drop in performance is due to executive short supply, we find that after a death event executive wages in other firms increase, but only in thin markets.