How does access to public equity markets affect real outcomes? We examine the human capital of IPO-filing firms and how going public affects their labor force. While IPO-filing ?rms have high average wages and limited industrial diversification, a successful IPO increases departures of high-wage employees to startups and triggers industrial diversification through employment growth in non-core industries. Surprisingly, IPOs do not significantly affect earnings growth of pre-IPO workers. Instead, post-IPO hires receive larger earnings increases upon joining. Overall, going public has significant implications for the workers, the firm, and labor reallocation across firms.
Babina, Tania, Paige Ouimet, and Rebecca Zarutskie. "IPOs, Human Capital, and Labor Reallocation." Columbia Business School, June 1, 2020.
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