Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35966
Authors: 
Kolko, Jed
Neumark, David
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers 4415
Abstract: 
We assess a prominent argument for local economic policies that favor locally-owned businesses - namely, that locally-owned firms are more likely to internalize the costs to the community of decisions to reduce employment and hence help to insulate cities from adverse economic shocks. We test this argument by examining how establishment-level employment responses to economic shocks are affected by establishment ownership. We find evidence hat some types of local ownership do insulate regions from economic shocks, although the clearest benefits do not come from small, independent businesses, but instead from corporate headquarters and, to a lesser extent, from small, locally-owned chains.
Subjects: 
Local ownership
employment shocks
employment stability
JEL: 
R11
R38
J23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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