Abstract

http://ssrn.com/abstract=1715232
 
 

References (52)



 
 

Citations (2)



 


 



Labor Mobility: Implications for Asset Pricing


Andres Donangelo


University of Texas at Austin - Department of Finance

May 1, 2013

Journal of Finance, Forthcoming

Abstract:     
Labor mobility is the flexibility of workers to walk away from an industry in response to better opportunities. I develop a model in which labor flows make bad times worse for shareholders who are left with capital that is less productive. The model shows that firms face greater operating leverage by providing flexibility to mobile workers. I construct an empirical measure of labor mobility consistent with the model and document an economically significant cross-sectional relation between mobility, operating leverage, and stock returns. I find that firms in mobile industries earn returns over 5% higher than those in less mobile industries.

Measure of labor mobility used in the paper is available in my website.

Number of Pages in PDF File: 38

Keywords: Asset Pricing, Labor Mobility, Expected Returns, Cross-Section

JEL Classification: G12

Accepted Paper Series


Download This Paper

Date posted: November 26, 2010 ; Last revised: October 31, 2013

Suggested Citation

Donangelo, Andres, Labor Mobility: Implications for Asset Pricing (May 1, 2013). Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1715232 or http://dx.doi.org/10.2139/ssrn.1715232

Contact Information

Andres Donangelo (Contact Author)
University of Texas at Austin - Department of Finance ( email )
Red McCombs School of Business
Austin, TX 78712
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,629
Downloads: 598
Download Rank: 22,805
References:  52
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 1.016 seconds