AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Race, Firm Size, and the School-to-Work Transition
AEA Papers and Proceedings
(pp. 400–405)
Abstract
We examine race differences in labor market entry timing and quality of first jobs. Black workers are more likely to begin their careers at large firms but exhibit delayed entry. White workers increase their odds of starting at a large firm by searching for longer. Young Black workers, who exhibit no such return to search time, appear to face a trade-off between finding a job at a large firm or not at all. While large firms confer a well-known pay premium, White workers appear to benefit from greater accessibility of small firms for gaining a foothold in the labor market.Citation
Kahn, Lisa B., and Yang Chang. 2026. "Race, Firm Size, and the School-to-Work Transition." AEA Papers and Proceedings 116: 400–405. DOI: 10.1257/pandp.20261095Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- I26 Returns to Education
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- L25 Firm Performance: Size, Diversification, and Scope