We propose a theory of firm production that requires diverse inputs. We show that in a competitive labor market, firms … differ in their skill composition. Organizations with higher Total Factor Productivity (TFP) are larger and hire from a … productivity using our model shows that a CES production function generates unbiased estimates of TFP but biased estimates of …

We study how competition for talent affects CEO compensation, taking into consideration that CEO decisions and CEO … contracts that generate rents for the CEO. We derive the equilibrium compensation contract, and we describe how competition … changes that contract and the outcome. Intuitively, competition increases realized CEO compensation. It also strengthens the …

competition for talent. High-ability individuals receive higher pay, but are not more likely to be awarded long-term compensation …. These findings suggest that long-term compensation arises in an optimal contract, because competition for talent accentuates …

We investigate the impact of product market competition on firms’ automation investments. We use a rich combination of … micro-data on Portuguese exporters and exploit a novel source of variation in the degree of competition they face – a tariff … competition in export markets tend to reduce investments in automation technologies. These average negative effects are driven by …