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Abstract:
By combining data from two sources, we are able to examine how venture capital fund performance, measured as fund IRR or cash-on-cash return, is related to fund outcomes (IPO and acquisition percentages) and abandonment option exercise practices after the fund’s initial investment in a venture. We also are able to relate fund performance to the track record of the venture capital firm, its experience, agility, reputation, and investment and exit style. Our primary findings include: (1) M&A success is almost as important as IPO success in explaining fund performance; (2) funds with aggressive exercise of abandonment options after the first investment tend to outperform those that continue to support a large percentage of their initial investments; (3) prior performance of the firm, in terms of success percentages and abandonment practices, is strongly related to fund performance; (4) firm experience in the same industry sector is positively related to fund performance, but there is some evidence that agility, as reflected by the firm’s ability to move to a new sector, is also valuable; (5) separate from experience, generic firm reputation also is positively related to performance; (6) and style, in terms of the mix of exit percentages and abandonment practices, persists over funds of the same firm. These results are robust to controlling for selection bias of the reporting entities, as well as biases related to looking-back at initial fund performance, survivorship, and attrition. Quantile regression estimates establish that our results hold across the full range of realized performance levels, though we do find evidence that top performing funds offered by highly reputable venture capital firms behave differently.

venture capital, persistence, reputation, IPO, acquisition

Abstract:
This paper examines the impact of minimum wages on unemployment duration. We utilize the Displaced Worker Survey to estimate the effects of minimum wages on unemployment duration, while controlling for individual characteristics and state effects that may be correlated with the value of the minimum wage. The empirical results suggest that minimum wages have differential impacts on spell lengths for unemployment insurance recipients and non-recipients. Higher minimum wages are associated with shorter unemployment duration for male insurance recipients, but longer unemployment spell length for lower-skill, male non-recipients. The duration results are not driven by changes in labor market participation. These results are also robust to changes in specification and different measures designed to capture the binding nature of a state minimum wage. The findings are consistent with others in generating concerns about the distributional impact of minimum wages.

minimum wages, unemployment duration

Abstract:
While most results in the area of empirical labor economics have been highly contested, the literature on establishment size - wage effects has consistently shown a positive relationship between the number of employees and workers' wages. While several theories have been offered to explain these outcomes, the use of data with limited employer characteristics make for a dubious connection between theory and results. This study examines the firm size - wage effect using a dataset which captures typical worker demographics, but also contains employer information not typically captured in larger datasets. The results provide strong evidence that these wage effects are primarily the result of worker sorting and capital-labor complementarities and, to a lesser degree, a consequence of rent-sharing and efficiency wages.

firm size-wage effects, sorting, capital-labor complementarity, rent-sharing, efficiency wages

Abstract:
This paper examines how immigrant enclaves influence labor market outcomes. We examine the effect of ethnic concentration on both immigrant earnings and employment in high immigration states using the non-public use, 1-in-6 sample of the 2000 U.S. Census. Although we find that there is some variability in the estimated enclave effects, they exhibit an overall negative impact. Male and female immigrants from several ethnic groups tend to earn lower wages when residing in areas with larger ethnic concentrations. Similarly, for employment, most of the statistically significant effects are negative, although much smaller than the enclave impacts on earnings.

Abstract:
The goal of this article is to examine how immigrant enclaves influence labor market outcomes. We examine the effect of ethnic concentrations on earnings in the state of California. Individual-level wage equations that control for several observable human capital and demographic characteristics are estimated. In addition, we introduce a measure that captures an ethnic group's proportion of the metropolitan area population. In general, we find that any potentially positive enclave effects are likely to be offset by negative labor market competition effects. In particular, most enclave effects become insignificant after controlling for metro area-specific effects.

Abstract:
In this paper, we examine the compensating wage effects of no-trade clauses in Major League Baseball player contracts. Under current rules, no-trade clauses insure players against risks associated with involuntary movements to undesirable teams. Since there is an abundance of individual performance, team characteristics, and contract information for this labor market, it provides an excellent opportunity for testing compensating wage differentials. Using an accepted player salary equation and data from the 2003-2008 seasons, we find evidence that there is a significant trade-off between monetary compensation and the risk reduction provided by the inclusion of a no-trade clause in a player’s contract.

compensating wage differentials, non-monetary benefits, no-trade clause, performance and compensation

Abstract:
This article seeks to improve on previous estimates of the impact of immigration on native wages by using an occupational segmentation approach that directly controls for regional migration and other shifts in the native-born U.S. labor supply. The U.S. labor market is segmented by occupation in order to determine which, if any, native workers tend to be vulnerable to increased immigrant competition for jobs. The results suggest that native-born workers in the primary sector are the main beneficiaries of increased immigration, while native-born Hispanic females in the secondary sector are the most susceptible to downward wage pressures.

immigration, wages

Abstract:
This paper tests for the existence of nationality discrimination in the English professional soccer league. Although wage equations have typically been used by labor economists to identify discrimination, the approach may be plagued by unobserved productivity characteristics that are correlated with race and ethnicity, resulting in biased estimates of discrimination. This paper utilizes a market test approach to determine the existence of nationality discrimination. The results provide some evidence that players from South America may receive preferential labor market treatment, but this is only evident in the Premier (or highest) division of the league. In addition, this labor market discrimination appears to be a rational response from owners who observe increased attendance with a larger presence of South American players.

Earnings, Discrimination, Market Test, English professional soccer league