Corporate Governance and Labor Market Outcomes
Grant description:
The declining relative earnings of workers constitutes an important macroeconomic trend. This project will study a new potential explanation: changes in corporate governance. To do so, the author will use the Longitudinal Employer-Household Dynamics, Longitudinal Business Databases, Census of Manufacturers, and the Annual Survey of Manufacturers to analyze changes generated by activist hedge fund investors, then changes in equity-based compensation of managers, and their impacts on worker outcomes.