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  • DKL-JEBO 2017

    Rights statement: This is the author’s version of a work that was accepted for publication in Journal of Economic Behavior and Organization. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Behavior and Organization, 137, 2017 DOI: 10.1016/j.jebo.2017.02.016

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Subcontracting and the survival of plants in the road construction industry: a panel quantile regression analysis

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<mark>Journal publication date</mark>05/2017
<mark>Journal</mark>Journal of Economic Behavior and Organization
Volume137
Number of pages19
Pages (from-to)113-131
Publication StatusPublished
Early online date19/03/17
<mark>Original language</mark>English

Abstract

This paper investigates how subcontracting parts of contracted work shapes entrants’ success and survival. We find that newly developed quantile regression approaches can be adapted to study survival of firms competing for government contracts in road construction. The method is applied on a data set that includes patterns of firm entry, exit and auction related information. We find an apparent increase in the business life of firms who subcontract out part of their projects. In Texas, these subcontracting effects appear to be more pronounced for firms with few or no options outside the industry, and among firms who contract out part of their work to Disadvantaged Business Enterprises.

Bibliographic note

This is the author’s version of a work that was accepted for publication in Journal of Economic Behavior and Organization. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Behavior and Organization, 137, 2017 DOI: 10.1016/j.jebo.2017.02.016