3 ms·
This point is actually addressed in the introduction of the study. > These checks notwithstanding, an obvious concern with our estimates is the endogeneity of
by entropi 4y ago
This point is actually addressed in the introduction of the study.
> These checks notwithstanding, an obvious concern with our estimates is the endogeneity of the
decision to appoint a business manager—perhaps firms turn to business managers when they need to
cut labor costs. To bolster the argument that our results capture causal effects of business managers
on wages and the labor share, we use two strategies. First, we obtain very similar estimates when we
focus on manager retirements and deaths, which are arguably less endogenous than other switches from
non-business to business managers. Second, we develop an instrumental variable (IV) strategy (...)
- boh 4y agoJust having any methodology doesn't count, it has to actually serve to legitimize the model (which it doesn't). Pretty much every publicly traded firm has had MBA managers for the past fifty years, and yet somehow they still make a profit. This report may arouse people's ingrained dislike of the business managers they've had to deal with but it doesn't actually offer any insight that can survive the least bit of scrutiny.
- yamtaddle 4y ago> Pretty much every publicly traded firm has had MBA managers for the past fifty years, and yet somehow they still make a profit. Does the paper make a claim that's falsified by this observation?