From Labor to Intermediates: Firm Growth, Input Substitution, and Monopsony

We thank Juanma Castro-Vincenzi, Andres Octavio Davila-Ospina, Mert Demirer, Jan Eeckhout, Alexander Fogelson, Joachim Hubmer, Sergio Inferrera, Jordi Jaumandreu, Danial Lashkari, Miguel León-Ledesma, Hugo Molina, Benjamin Moll, Anthony Savagar, Petr Sedlacek, Antonio Spilimbergo, Chad Syverson, and seminar participants at Boston College, Harvard Kennedy School, the Minneapolis Fed, MIT Future Tech, Tufts University, Queen’s University, the ASSA 2026 Annual Meeting, IIOC 2025, the SOLE 2026 Annual Meeting, WEAI Annual Conference 2025, UC Berkeley Labor Lunch, UC Berkeley Macro Lunch, the CEPR Macroeconomics and Growth Annual Symposium 2024, the NBER Wage Dynamics in the 21st Century Conference, the Seminar on Firm Analysis at the National Bank of Belgium, and the Workshop in Honor of David Card at UPF Barcelona for useful comments. We thank Todd Sorensen and Anna Sokolova for sharing their data. We thank the Research Data Centre of the Statistical Offices of the Federal States, particularly Michael Rößner and Denise Henker, for their invaluable support with data access and processing. We are grateful to the IWH, the CompNet team, and all data-providing institutions. Schoefer thanks the UC Berkeley Clausen Center for research support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• November 14, 2024
• November 22, 2024