Exit Rates Research Articles

Environmental regulations and export performance: firm-level evidence from China’s low-carbon pilot policy

The rapid increase in global carbon emissions has raised significant concerns, prompting various environmental regulations, including China’s low-carbon pilot policy. Prior studies have shown mixed results regarding the impact of environmental regulations on firms’ export performance. Using data from Chinese industrial firms from 2001 to 2015, this study investigates how the low-carbon pilot policy, a quasi-experiment, influences firms’ exports. We employ the Heckman Two-Step Method and the Difference-in-Differences approach to separate the effects on firms’ export participation and the effects on export scales. We find that firms in the pilot provinces/cities become less likely to export after the implementation of the low-carbon pilot policy compared to firms in the non-pilot regions, resulting in a relative decrease in export probability by 4.5 percentage points. For the firms that export, their export values relatively decrease by 10 percent after the policy implementation. The effects are mainly driven by firms in Eastern China. The policy leads to higher exit rates and lower entry rates in international markets for firms in pilot regions. After the implementation of the low-carbon pilot policy, exporting firms increase the unit price of their export products, reduce the quantity of export products, and diversify both their export destinations and product types. However, we do not find evidence supporting the Pollution Haven mechanism.

Analytical Survival Analysis of the Non-autonomous Ornstein–Uhlenbeck Process

The survival probability for a periodic non-autonomous Ornstein–Uhlenbeck process is calculated analytically using two different methods. The first uses an asymptotic approach. We treat the associated Kolmogorov Backward Equation with an absorbing boundary by dividing the domain into an interior region, centered around the origin, and a “boundary layer” near the absorbing boundary. In each region we determine the leading-order analytical solutions, and construct a uniformly valid solution over the entire domain using asymptotic matching. In the second method we examine the integral relationship between the probability density function and the mean first passage time probability density function. These allow us to determine approximate analytical forms for the exit rate. The validity of the solutions derived from both methods is assessed numerically, and we find the asymptotic method to be superior.

Property Rights Restrictions and Self-Employed Workers: Evidence From For-Hire Owner–Operators in U.S. Trucking

In 2019, self-employed individuals in the United States owned and operated more than 27 million nonemployer firms and generated more than $1.3 trillion in revenue. Our study examines how self-employed workers adjust their operations in response to an exogenous regulatory change that places limits on how they can utilize their productive assets. Extending modern property rights theory of the firm (PRTF), we studied how self-employed for-hire truck drivers modified their operations in response to the required installation of electronic logging devices (ELDs) in their vehicles. The introduction of ELDs bolstered enforcement of preexisting legal hours-of-service limits, thereby weakening the drivers’ ability to accept hauls above statutory hours-of-service limits and reducing the strength of their economic property rights. Our difference-in-differences analysis that relies on self-employed truck drivers exempt from the ELD regulation as a control group reveals that the restrictions imposed by the ELD mandate, while effective at curbing major hours-of-service violations, prompted a change in a host of market behaviors among affected drivers, including a shift toward working as subcontractors, decreased labor supply, and increased exit rates from the industry. These findings contribute to the literature on PRTF. First, our findings underscore the significance of economic property rights in shaping self-employed workers’ operating decisions as legal property rights were largely left unchanged under the ELD regulation. Second, our findings with respect to subcontracting highlight that property rights restrictions placed on asset attributes may prompt self-employed workers to unbundle economic property rights and allocate them to exchange partners better equipped to maximize the economic value reaped from these rights. Such transfer of economic property rights common to intermediate forms of organizational design such as subcontracting embodies a multidimensional view of economic property rights. By demonstrating a range of consequences of restricting self-employed workers’ economic property rights, our study carries important implications for theory, managers, and policymakers.

Gender balance in academia: Evidence from finance departments

Females are underrepresented in academic finance departments, especially among senior faculty. Using information on 2910 finance scholars from 387 universities worldwide, we show that although females have become more common in finance departments over the past 30 years, yet only one in ten full professors are women. We explore whether this gap is associated with a lower likelihood of female faculty transitioning into higher academic ranks and find no significant difference between the sexes. While we cannot rule out the existence of a glass ceiling impacting women, partly due to their higher exit rates from the profession, we primarily attribute the low representation of female finance professors to historic male-centric recruitment activity. Due to the length of time for early-career academics to reach full professor status, gender imbalance at the most senior levels in finance is likely to continue for several years.

Price dispersion in dynamic competition

In product markets, substantial price dispersion exists for transactions of physically identical goods. Moreover, in these markets, incumbent firms sell at higher prices than entrants. This paper presents a theory of price formation under dynamic competition that explains these facts by assuming both that consumers have imperfect access to firms and that their degree of access depends on each firm’s sales history. The model has a unique equilibrium that features randomized pricing strategies, with incumbents always posting higher prices than entrants. For a fixed underlying environment, the equilibrium converges to a stationary equilibrium over time. As firms’ entry and exit rates approach zero, this stationary equilibrium converges to perfect competition.

Character is fate: How tourism entrepreneurs’ extraversion and agreeableness affect their market exit in the sharing economy

The rate of market exit of tourism entrepreneurs from sharing economy platforms is surprisingly high, given that the sharing business is flourishing. We argue that the destiny of performance is partly shaped by the tourism entrepreneur's personality, and explore the effect, channel, and interaction of personality traits on exit (vs. operation) with three studies. Based on a dataset comprising monthly information of 138,331 observations involving 21,556 tourism entrepreneurs and a survey experiment, our findings indicate that agreeableness decreases the exit rate whereas extraversion increases it; service quality mediates the impact. Agreeableness benefits from the contextual factor of managerial experience in the tourism industry, while extraversion benefits from restricted use policies. Moreover, extraversion leads to an operational interest trap for survival. This study is the first to unveil the intricate mechanism underlying the impact of personality traits on tourism entrepreneurs' exit and establish a novel construct known as Personality - Exit fate (PEF), which aims to stimulate tourism entrepreneurship in emerging economies.

Modelling the role of tourism in the spread of HIV: A case study from Malaysia

This study aimed to assess the role of tourism in the spread of human immunodeficiency virus (HIV) using Malaysian epidemiological data on HIV and acquired immunodeficiency syndrome (AIDS) incidence from 1986 to 2004. A population-level mathematical model was developed with the following compartments: the population susceptible to HIV infection, the clinically confirmed HIV-positive population, the population diagnosed with AIDS, and the tourist population. Additionally, newborns infected with HIV were considered. Sensitivity analyses and variations in fixed parameter values were used to explore the effect of changes to various parameter values on HIV incidence in the model. It was determined that variations in the rate of HIV-positive inbound tourist entries and the rate of foreign tourist exits (i.e., the duration of time tourists spent in Malaysia) significantly impacted the predicted incidence of HIV and AIDS in Malaysia. The model's fit to observed HIV and AIDS incidence was evaluated, resulting in adjusted R2 values of 53.3% and 53.2% for HIV and AIDS, respectively. Furthermore, the reproduction number (R0) was also calculated to quantify the stability of the HIV endemicity in Malaysia. The findings suggest that a steady-state level of HIV in Malaysia is achievable based on the low value of R0 = 0.0136, and the disease-free equilibrium was stable from the negative eigenvalues obtained, which is encouraging from a public health perspective. The Partial Rank Correlation Coefficient (PRCC) values between the proportion of newborns born HIV-positive, the rate of Malaysian tourist entries returning home after contracting HIV, and the rate of foreign tourist exits have a significant impact on the R0. The methods provide a framework for epidemiological modelling of HIV spread through transient population groups. The model results suggest that the role of tourism should not be overlooked within the set of available measures to mitigate the spread of HIV.

Tipping points, multistability, and stochasticity in a two-dimensional traffic network dynamics

Mitigating traffic jams is a critical step for the betterment of the urban transportation system, which comprises a large number of interconnected routes to form an intricate network. To understand distinct features of vehicular traffic flow on a network, a macroscopic two-dimensional traffic network model is proposed incorporating intra-nodal and inter-nodal vehicular interaction. Utilizing the popular techniques of nonlinear dynamics, we investigate the impact of different parameters like occupancy, entry rates, and exit rates of vehicles. The existence of saddle-node, Hopf, homoclinic, Bogdanov–Takens, and cusp bifurcations have been shown using single or biparametric bifurcation diagrams. The occurrences of different multistability (bistability/tristability) phenomena, stochastic switching, and critical transitions are explored in detail. Further, we calculate the possibility of achieving each alternative state using the basin stability metric to characterize multistability. In addition, critical transitions from free flow to congestion are identified at different magnitudes of stochastic fluctuations. The applicability of critical slowing down based generic indicators, e.g., variance, lag-1 autocorrelation, skewness, kurtosis, and conditional heteroskedasticity are investigated to forewarn the critical transition from free flow to traffic congestion. It is demonstrated through the use of simulated data that not all of the measures exhibit sensitivity to rapid phase transitions in traffic flow. Our study reveals that traffic congestion emerges because of either bifurcation or stochasticity. The result provided in this study may serve as a paradigm to understand the qualitative behavior of traffic jams and to explore the tipping mechanisms occurring in transport phenomena.

Long-term effects of abomasal infusion of linoleic and linolenic acids on the enrichment of n-6 and n-3 fatty acids into plasma lipid fractions of lactating cows

Our objective was to compare abomasal infusions of linoleic (18:2n-6) and α-linolenic (18:3n-3) acids on the enrichment of n-6 and n-3 fatty acids (FA) into the plasma lipid fractions of lactating dairy cows and evaluate their potential carryover effects in plasma lipid fractions post-infusion. Six rumen-cannulated multiparous Holstein cows (252 ± 33 d in milk) were fed the same diet and assigned to 1 of 2 treatments in a completely randomized design with repeated measures. Treatments were abomasal infusions (67 g/d total FA) of 1) n-6 FA blend (N6) to provide approximately 43 g/d 18:2n-6 and 8 g/d of 18:3n-3; or 2) n-3 FA blend (N3) providing 43 g/d 18:3n-3 and 8 g/d 18:2n-6. Treatments were dissolved in ethanol, and the daily dose for each treatment was divided into 4 equal infusions, occurring every 6 h. The treatment period lasted from d 1 to 20, and the carryover period lasted from d 21 to 40. Results are presented as FA contents within each of the 4 main plasma lipid fractions: cholesterol esters (CE), phospholipids (PL); triglycerides (TG), and plasma nonesterified fatty acids. Concentrations of individual lipid fractions in plasma were not quantified. Plasma CE and PL had the highest content of polyunsaturated FA (PUFA) during both the treatment and carryover periods. In plasma PL, N3 increased the contents of total n-3 FA (134%), 18:3n-3 (267%), and eicosapentaenoic acid (96.3%, 20:5n-3), and decreased total n-6 FA (8.14%) and 18:2n-6 (8.16%) from d 4 to 20 compared with N6. In plasma CE, N3 increased the contents of total n-3 FA (191%) from d 4 to 20, 18:3n-3 from d 2 to 20 (178%), and 20:5n-3 from d 6 to 20 (59.9%), while N3 decreased total n-6 FA from d 4 to 20 (11.2%) and 18:2n-6 from d 2 to 20 (10.5%) compared with N6. In addition, compared with N6, N3 decreased arachidonic acid (20:4n-6) at d 2 (45%) and from d 10 to 20 (14.7%) in PL and tended to decrease 20:4n-6 without interacting with time for CE. Phospholipids were the only lipid fraction with detectable levels of docosahexaenoic acid (22:3n-6) in all samples, but we did not observe differences between treatments. In plasma TG, N3 increased the contents of total n-3 FA (135%) and 18:3n-3 (146%) from d 4 to 20, increased 20:5n-3 from d 12 to 20 (89%), decreased or tended to decrease total n-6 FA content from d 6 and 8 (26.9%), and tended to decrease 18:2n-6 at d 8 compared with N6. A similar pattern was observed for plasma nonesterified fatty acids. We observed positive carryover effects for both N3 and N6 at different degrees in all lipid fractions, with N3 promoting more consistent outcomes and increasing total n-3 FA throughout the carryover period (from d 22 to 40) in both PL (52.8%) and CE (68.6%) compared with N6. It is important to emphasize that the higher magnitude responses observed for n-3 FA are also influenced by the content of n-3 FA being much lower than those of n-6 FA in all lipid fractions. While these data provide important and robust information, future research quantifying changes in concentrations of individual lipid fractions in plasma and the entry and exit rates of specific FA will further enhance our understanding. In conclusion, abomasally infusing N3 and N6 increased the contents of n-3 and n-6 FA, respectively, in all plasma lipid fractions. These responses were more evident in PL and CE. We also observed positive carryover effects in all lipid fractions, where N3 had more consistent outcomes than N6. Our results indicate that dairy cows have a robust mechanism to conserve essential FA, with a pronounced preference for n-3 FA.

The cell cycle oscillator and spindle length set the speed of chromosome separation in Drosophila embryos.

Anaphase is tightly controlled in space and time to ensure proper separation of chromosomes. The mitotic spindle, the self-organized microtubule structure driving chromosome segregation, scales in size with the available cytoplasm. Yet, the relationship between spindle size and chromosome movement remains poorly understood. Here, we address how the movement of chromosomes changes during the cleavage divisions of the Drosophila blastoderm. We show that the speed of chromosome separation gradually decreases during the 4 nuclear divisions of the blastoderm. This reduction in speed is accompanied by a similar reduction in the length of the spindle, thus ensuring that these two quantities are tightly linked. Using a combination of genetic and quantitative imaging approaches, we find that two processes contribute to controlling the speed at which chromosomes move at mitotic exit: the activity of molecular motors important for microtubule depolymerization and the cell cycle oscillator. Specifically, we found that the levels of Klp10A, Klp67A, and Klp59C, three kinesin-like proteins important for microtubule depolymerization, contribute to setting the speed of chromosome separation. This observation is supported by quantification of microtubule dynamics indicating that poleward flux rate scales with the length of the spindle. Perturbations of the cell cycle oscillator using heterozygous mutants of mitotic kinases and phosphatases revealed that the duration of anaphase increases during the blastoderm cycles and is the major regulator of chromosome velocity. Thus, our work suggests a potential link between the biochemical rate of mitotic exit and the forces exerted by the spindle. Collectively, we propose that the cell cycle oscillator and spindle length set the speed of chromosome separation in anaphase.

Plant-level adjustments to imports and exports at the extensive margin

This paper presents an empirical analysis of plant level responses to the China trade shock based upon a DSGE framework with heterogeneous firms. The empirical analysis shows that soaring imports from China are associated with a higher probability of plant closure. By contrast, firms in export oriented industries are less likely to exit. We rationalize these findings by several counter-factual experiments based upon a DSGE framework. Imports always raise the exit rate but the export-effect is ambiguous. More exports fuel competition among domestic rivals associated with more exits. However, this competition effect disappears when the share of exporters is extremely high. The effects of imports and exports on firm entry are close to zero in both theory and empircs. We also introduce a novel productivity shock channel. Additional export sales better protect firms from other shocks. We show this by introducing negative productivity shocks into the model.

What explains exit in Indian manufacturing industries?

PurposeThe purpose of this paper is to investigate the likelihood of firm exit, focusing on firm- and sector-specific factors and other potential constraints that may lead to exit.Design/methodology/approachThe authors address the main research question by using hazard-cox and probit models on plant level data for the period 1998–1999 to 2012–2013, drawn from the Annual Survey of Industries collected by the Central Statistical Organisation.FindingsThe authors find that probability of exit reduces with improved firm performance. Urban firms, proprietary firms and smaller firms are more likely to exit as compared with their respective counterparts. The findings are robust to alternate measures of performance, alternate specifications and different methods.Originality/valueStudies of entry and exit rates at a point in time are useful in examining the turnover of establishments. But to understand the establishment survival, the authors must also examine the probability of firm exit and the possible determinants that aid exit. There are institutional factors that prevent easy exit of firms from an industry. It would be worthwhile to see how the exit rate will be impacted if these barriers ceased to exist. In this study, the authors construct a model of exit, which would help us to predict firm exit.

Vascular Endothelial Growth Factor Receptor Inhibitors for Recurrent or Metastatic Adenoid Cystic Carcinoma

There is no systemic therapy for recurrent or metastatic adenoid cystic carcinoma (ACC) approved by the US Food and Drug Administration. To examine the efficacy, safety, and tolerability of vascular endothelial growth factor receptor (VEGFR) inhibitors in recurrent or metastatic ACC. PubMed, Embase, and Cochrane Library were systematically searched for studies of VEGFR inhibitors in recurrent or metastatic ACC from database inception to August 31, 2023. Inclusion criteria were prospective clinical trials of recurrent or metastatic ACC treated with VEGFR inhibitors, reporting at least 1 outcome of interest specifically for ACC. Of 1963 identified studies, 17 (0.9%) met inclusion criteria. The Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) reporting guideline was followed to extract data. Data were pooled using a random-effects generalized linear mixed model with 95% CIs. The primary efficacy outcome was best overall response to VEGFR inhibitors, including objective response, stable disease, or progressive disease (PD). Safety and tolerability outcomes included incidence of grade 3 or higher adverse events, rates of exit from trial due to PD or drug-related toxic effects, and dose reduction rate (DRR). A total of 17 studies comprising 560 patients with recurrent or metastatic ACC treated with 10 VEGFR inhibitors were included. The objective response rate was 6% (95% CI, 3%-12%; I2 = 71%) and stable disease was the most frequent best overall response (82%; 95% CI, 74%-87%; I2 = 67%). The 6-month disease control (defined as objective response and stable disease) rate was 54% (95% CI, 45%-62%; I2 = 52%). The rate of grade 3 or higher adverse events was 53% (95% CI, 42%-64%; I2 = 81%) and of DRR was 59% (95% CI, 40%-76%). Most patients (57%; 95% CI, 44%-70%; I2 = 83%) continued therapy until PD; 21% (95% CI, 15%-28%; I2 = 62%) of patients suspended therapy for toxic effects. In subgroup analysis by specific VEGFR inhibitor, the objective response rate was 14% (95% CI, 7%-25%; I2 = 0%), stable disease rate was 76% (95% CI, 63%-85%; I2 = 0%), proportion treated until PD was 61% (95% CI, 14%-94%; I2 = 94%), and DRR was 78% (95% CI, 66%-87%; I2 = 39%) with lenvatinib. Corresponding axitinib results were objective response rate of 8% (95% CI, 4%-15%; I2 = 0%) and stable disease rate of 85% (95% CI, 72%-92%; I2 = 69%), with 73% (95% CI, 63%-82%; I2 = 0%) of patients treated until PD, and the DRR was 22% (95% CI, 12%-38%; I2 = 77%). Rivoceranib had the highest objective response rate (24%; 95% CI, 7%-57%) but high heterogeneity among studies (I2 = 95%) and the lowest rate of patients who continued therapy until PD (35%; 95% CI, 20%-55%; I2 = 90%). This systematic review and meta-analysis found that VEGFR inhibitors were associated with high rates of disease stabilization in recurrent or metastatic ACC. Of 10 included VEGFR inhibitors, lenvatinib and axitinib were associated with the best combined and consistent efficacy, safety, and tolerability profiles, substantiating their inclusion in treatment guidelines.

What lies beneath these creatures of the state: understanding the death of specialised governments in the U.S.

ABSTRACT After analysing 40 years of census data on U.S. local government change, this study finds that the dissolution of special districts (specialised governments) or ‘exits’ in U.S. counties are largely unrelated to demand factors. Using fixed effects regression specified at the urban county level, we find that restrictions on the fiscal autonomy of cities are associated with decreases in the special district exit rate and count. There is also evidence that state grants of ‘broad’ or ‘limited’ functional home rule to cities increase special district dissolutions. These results largely disappear when examining subgroups of districts classified by their asset specificity. The findings are consistent with the circumvention argument made in the local autonomy literature and may indicate some service consolidation, albeit from a different perspective.

Does strategic coupling of TNCs affect their exit from host regions: Empirical analysis of the exit of Taiwanese enterprises from mainland China.

This study aims to investigate the temporal and spatial attributes of the exit of Taiwanese enterprises from mainland China between 2001 and 2021, by applying enterprise database data. Furthermore, the influence of strategic coupling on Taiwanese enterprises' exit from mainland China was also investigated. The following are the key findings: The spatial distribution pattern of the exit rate of Taiwanese enterprises in mainland China varied at different phases. In contrast, the inland regions of the country's central and western zones, which are characterized by comparatively less developed economies, maintained consistently high exit rates, whereas the eastern coastal region retained a low exit rate. Particularly, the relationship between Taiwanese enterprises and the invested areas changed from Captive coupling to Cooperative coupling and subsequently to Absorptive Coupling. Similarly, the coupling modes significantly influenced the exit of Taiwanese enterprises from mainland China. Moreover, the COVID-19 pandemic has contributed to the backward connection of Taiwanese corporations, which have become more reliant on the mainland China market and local suppliers than earlier. Taiwan-favoring policies and the regional innovation environment have consequently emerged as the primary locational advantages for retaining Taiwanese enterprises in the aftermath of the global financial crisis. Therefore, the aforementioned factors may help to reduce the Taiwanese enterprises' exit from mainland China and possess valuable policy implications for Taiwan investment zones in mainland China.

Political risk and firm exit: evidence from the US–China Trade War

When do political risks lead to divestment from a profitable market? Existing theories argue both that foreign investors may be sensitive to political tensions, but that they may only be sensitive to violent conflict. Using the crucial case of the US–China Trade War, we outline how political risks increased rates of exit among foreign firms while firm entrenchment mitigated these risks. Using a new dataset on all foreign-invested enterprises registered in China between 2017 and 2019, we implement triple interaction models to isolate the impact of increased political risks, investor national origin, and entrenchment on firm exit. Our findings show that heightened political risks during the trade war did increase firm exits by 34% – 3% points over the pre-conflict baseline. Tariffs, the targeted effect of the trade war, increase US firm exits by 1% point. Firm exit is determined by the balance of heightened political risks against the availability of firm-level resources to mitigate these risks. These findings reconcile the conflicting expectations of the ‘business as usual’ and ‘follow the flag’ literatures about how firms respond to political risk, highlighting the tremendous collateral damage tariffs can cause in an age of global value chains.

Retaining Australian Nurses: An Analysis of Nurses' Wages and Exit Rates

AbstractThis study examines factors influencing Australian nurses' decisions to quit their jobs, the pathways they take after quitting, and estimates the average wage change associated with a nurse changing professions. Using data from the Household, Income, and Labour Dynamics in Australia Survey and panel data estimation methods, we find that a nurse's pre‐exit hourly wage is significantly associated with their exit decision when controlling for relevant exogenous factors. We also find that most nurses who change professions stay in the healthcare sector, which is characterised by significant increases in hourly wages and occupational prestige and suggests that these nurses change jobs for better opportunities. We conclude that while nurses' exit decisions are not associated with a loss of human capital in healthcare, higher wages would have to be paid if the policy objective is to increase nurse retention.

Job Satisfaction and Staff Performance in Esit Eket Local Government Council of Akwa Ibom State Nigeria

With the general unemployment rate estimated at over 32% and youth unemployment at over 50%, Nigeria is a country of few opportunities and occupational mobility is more or less non-existent. It is widely believed that most people who work in the civil service, especially at the Local Government Councils do so not because they enjoy it but because that is what is available. This study investigated job satisfaction amongst employees of Esit Eket Local Government Council and its relationship with their performance. Using a survey research method, the researchers administered a questionnaire to the entire staff population of 256, of which 246 representing 96.09% were correctly completed and returned. The findings of the study revealed that there is job satisfaction amongst the workers as evidenced by the low staff turnover and exit rate from the sector and that there is a significant relationship between Local Government employee job satisfaction and performance. Contrary to the negative social constructs associated with public staff at the Local Government Councils, they are performing real services of value which ensure political stability as well as accessibility and affordability of key citizen services. To sustain and increase the satisfaction level, the study recommended that the government should carry out innovative improvements to the working conditions of staff at Esit Eket in a way that is enriching and gives room for value creation, such that innovation and creativity now attract key rewards such as promotion, to sustain staff satisfaction.

Acquisitions, spatial heterogeneity and economic impacts in Central European non-metro-politan regions

ABSTRACT This paper aims to make a conceptual and empirical contribution to our understanding of the effects of extra-regional assets and knowledge inflow, through mergers and acquisitions (M&A), in different types of regions. We revealed that the M&A market is not geographically homogeneous, and regions differ in all aspects of the M&A market: relative position, local density and foreign attractiveness, the same as in the M&A intensity. This heterogeneity is not random but follows a spatial pattern and differences in economic fundamentals of regions, but at the same time, there is no linear relationship between economic performance and M&A performance. The regional M&A market characteristics can explain differences in the impacts of M&A transactions on the economy, especially in the exit rate of companies after acquisition and in the change of employment. The impacts of M&A on the regional economy generally do not differ by sector of the acquired company. However, some patterns show that the negative effects are more present after acquisitions of firms in tradeable sectors in the less developed regions, whereas in the stronger regions, the most vulnerable sectors belong to the part of the economy which offers mundane, but occasionally purchased (and thus substitutable) goods.

Minimum wage and self-employed business owners: Evidence from South Korea

This study examines the influences of minimum wage on self-employment exits, using recent changes in the minimum wage level in South Korea. Using the cross-industry variation on the impact of the minimum wage—the proportion of workers whose wages are below the minimum wage in the upcoming year—combined with individual longitudinal data, I estimate the model of self-employment exits. Overall, the estimates show that the minimum wage hike has no significant impact on self-employed workers. However, it increases the likelihood of the business closing for the self-employed who hire employees. The results imply that a ten percent increase in the minimum wage raises the exit probability by 2.6 percentage points, which is 30.9 % of the average exit rate for those with employees. Moreover, the exits are significantly associated with the transition to non-employment.