First-Stage Regression for the Labor Supply Elasticity to the Firm
| Variable (103 Local Labor Markets) | |
|---|---|
| Share of hires from nonemployment | -9.813 |
| (2.029) | |
| Log population density | -0.1136 |
| (0.1029) | |
| Share of low-skilled workers | 0.5529 |
| (1.574) | |
| Share of high-skilled workers | -4.893 |
| (3.174) | |
| Log Herfindahl index of employment | -0.1766 |
| (0.6505) | |
| Log employment share of the largest industry | 0.3067 |
| (0.4490) | |
| Unemployment rate | 0.0813 |
| (0.0288) |
Notes: Values are fromIEB, BHP, and official statistics, 1985–2010, given as time averages over years. Results of the first-stage regression underlying the IV estimates that instrument the labor supply elasticity to the firm with the share of hires from nonemployment. Robust standard errors are shown in parentheses.