AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
The Life Cycle of Businesses and Their Internal Organization
AEA Papers and Proceedings
vol. 111,
May 2021
(pp. 587–92)
Abstract
We document new stylized facts on the occupational mix of businesses in the United States and how their internal organization evolves over their life cycles. Our main empirical finding is that younger businesses have fewer hierarchical layers and lower span of control than comparable older businesses do. Our results suggest that businesses become simultaneously more hierarchical and increase their managerial span of control over their life cycles. We show that this pattern is not entirely driven by selection or differences in size and is pervasive across cohorts and sectors.Citation
Handwerker, Elizabeth Weber, Sara Moreira, and David Piccone Jr. 2021. "The Life Cycle of Businesses and Their Internal Organization." AEA Papers and Proceedings, 111: 587–92. DOI: 10.1257/pandp.20211121Additional Materials
JEL Classification
- D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
- M12 Personnel Management; Executives; Executive Compensation