Peter J. Klenow

Sep 23, 2024 | edwardconard.com | Peter J. Klenow |Huiyu Li |Brian Chingono |Jennifer Hiller

.@PeteKlenow and Huiyu Li argue that rising labor productivity raises the entry costs for new firms through higher wages and start-up costs, limiting the impact of productivity-enhancing policies on welfare. In the U.S., the number of workers per firm is stable or rises with output per worker over time and across states. This fact can be explained by a model in which entry costs rise with labor productivity.

Sep 19, 2024 | nber.org | Peter J. Klenow |Huiyu Li

Skip to main content This project arose from a previous version with Albert Bollard entitled “Entry Costs Rise with Development.” We thank research assistants Nathaniel Barlow, Patrick Kiernan, Jack Mueller, and Sam Tarasewicz for their excellent work.