3620 Locust Walk
Philadelphia, PA 19104
Britta Glennon is an Assistant Professor of Management at the Wharton School. She received a Ph.D. in Public Policy and Management at Carnegie Mellon University, and previously received a M.P.P in Public Policy from the University of Chicago and a B.A. in Economics and East Asian Studies from Cornell University.
Her research is at the intersection of innovation, immigration, and international business and has been featured in media outlets such as The Economist, the Wall Street Journal, Forbes, and Bloomberg.
Abstract: To spur entrepreneurship and economic growth, an increasing number of countries have introduced immigration policies that provide visas to skilled entrepreneurs. This paper investigates whether these policies influence the founding location choice of immigrant founders, by leveraging the introduction of Canada's Start-up Visa Program in 2013. We demonstrate that this immigration policy increased the likelihood that U.S.-based immigrants have a start-up in Canada by 69%. Our results show that Asian immigrants (who have a higher representation in Canada than in the U.S.) are disproportionately more likely to migrate to Canada to start their businesses, whereas Hispanic immigrants (who have a smaller representation in Canada than in the U.S.) are less inclined to do so. We also find that this propensity varies with the size of co-ethnic immigrant communities in the origin location. Overall, our study unveils the importance of immigration policies in determining founding location choice and has important implications for countries competing for global talent.
Britta Glennon, Miguel Garza Casado, Julia Lane, David McQuown, Daniel Rich, Bruce A. Weinberg, The Effect of Fiscal Stimulus: Evidence from COVID-19.
Abstract: Policymakers, faced with different options for replacing lost earnings, have had limited evidence to inform their decisions. The current economic crisis has highlighted the need for data that are local and timely so that different fiscal policy options on local economies can be more immediately evaluated. This paper provides a framework for evaluating real-time effects of fiscal policy on local economic activity using two new sources of near real-time data. The first data source is administrative records that provide universal, weekly, information on unemployment claimants. The second data source is transaction level data on economic activity that are available on a daily basis. We use shift-share approaches, combined with these two data sources and the novel cross-county variation in the incidence of the COVID-19 supplement to Unemployment Insurance to estimate the local impact of unemployment, earnings replacement, and their interaction on economic activity. We find that higher replacement rates lead to significantly more consumer spending – even with increases in the unemployment rate – consistent with the goal of the fiscal stimulus. Our estimates suggest that, based on the latest data, eliminating the Federal Pandemic Unemployment Compensation (FPUC) supplement would lead to a 44% decline in local spending. If the FPUC supplement is reduced to $200, resulting in a reduction of the replacement rate by 44%, spending would fall by 28%. Even if the FPUC supplement is reduced to $400, the replacement rate would fall by 29% and spending would fall by 12%. Because these data are available in every state, the approach can be used to inform decision making not just in this current crisis, but also in future recessions.
Britta Glennon, Prithwiraj Choudhury, Dany Bahar, An Executive Order Worth $100 Billion: The Impact of an Immigration Ban’s Announcement on Fortune 500 Firms’ Valuation.
Abstract: On June 22, 2020, President Trump issued an Executive Order (EO) that suspended new work visas, barring nearly 200,000 foreign workers and their dependents from entering the United States and preventing American companies from hiring skilled immigrants using H-1B or L1 visas. Exploiting this shock, and using event study methodology analyzing the cumulative average abnormal returns (CAARs) of Fortune 500 companies following this order, we find that the EO statistically and economically significantly caused negative CAARs of up to 0.45%, the equivalent of over 100 billion of US dollars of losses, based on the firms’ valuation before the event. Our results are particularly pronounced for firms that had maintained or increased their reliance on skilled immigrant workers over the prior years.
Lee G. Branstetter, Britta Glennon, J. Bradford Jensen (2019), The IT Revolution and the Globalization of R&D, Innovation Policy and the Economy, 19 (1), pp. 1-37.
Lee G. Branstetter, Britta Glennon, J. Bradford Jensen (2019), The Rise of Global Innovation by US Multinationals Poses Risks and Opportunities, Peterson Institute Policy Brief, 19 (9).
Britta Glennon (Working), How Do Restrictions on High-Skilled Immigration Affect Offshoring? Evidence from the H-1B Program.
Lee G. Branstetter, Jong-Rong Chen, Britta Glennon, Nikolas Zolas (Working), Does offshoring production harm innovation? Firm-level evidence from Taiwan.
Abstract: Does the offshoring of production degrade or enhance the innovative capabilities of manufacturing firms? We contribute to this debate by exploiting a policy shock that differentially affected the ability of Taiwanese firms to offshore some products to China. We find causal evidence that offshoring has a negative effect on innovation in the technologies directly related to the offshored product, and that this negative effect is concentrated in product innovation. However, we also find evidence of a second-order positive effect of offshoring on the levels of innovation in other parts of the firm’s portfolio. These results are consistent with the notion that offshoring production changes the optimal innovation strategy of the firm.
Lee G. Branstetter, Britta Glennon, J. Bradford Jensen (Working), Doing Frontier Innovation in Non-Traditional R&D Locations: Lessons from U.S. Multinational Firms.
Abstract: In recent decades, multinationals have increasingly done R&D in non-traditional R&D destinations, with especially fast growth in emerging markets. This presents a puzzle: R&D is a knowledge-intensive activity, but local knowledge sources in non-traditional locations are often far from the technological frontier. We explain this puzzle by introducing a mechanism by which foreign affiliates can develop their technical capabilities to become active contributors to the multinational’s global innovation effort: utilizing home-based inventors on foreign affiliate inventor teams to facilitate knowledge transfer. Their utilization then declines as local inventors “catch up” technologically. We also provide evidence that the R&D portfolios of multinationals within each country are frequently concentrated in multiple technical areas, so aggregating across different technology areas might hide meaningful variation in firm behavior.
Britta Glennon, Julia Lane, Matthew Ross, Raviv Murciano-Goroff, Russell Funk, Funding and Group Structure: Unpacking the Black Box.
Lee G. Branstetter, Britta Glennon, J. Bradford Jensen, “The Importance of doing our BIT: The Economic Potential of a U.S.- China Bilateral Investment Treaty”. In U.S.-China Cooperation in a Changing Global Economy, Peterson Institute Policy Brief 17-1, edited by Posen, A. and Ha, J. (2017)
Most successful firms go global in some way; why do they go global, and how do they navigate across international borders? This is the question at the core of multinational management. In this course, you will learn about topics such as how firms choose where and how to invest abroad, how shifts in the political economy landscape affect firm strategy, and how firms respond to restrictions on the movement of both physical and human capital across borders. The class utilizes economics and global strategy frameworks to provide students with an understanding of how to formulate multinational firm strategy. Fulfills the Global Economy, Business, and Society requirement. This course has a mandatory attendance policy.
This is a graduate course focusing on the empirical aspects of multinational firms and international trade. The goal of the course is to familiarize graduate students with empirical work on multinational firms in the global economy, by reviewing the recent as well as older literature on this topic. Econometrics and statistical techniques for doing empirical work in international trade will also be discussed. We will focus on a variety of issues that are related to the multinational firm, beginning with trends in multinational activity, then moving to both horizontal and vertical theories of the multinational firm. Topics over the course of the semester will include patterns in the expansion of multinational firms, horizontal and vertical multinationals; the linkages between openness to trade and investment and growth; trade orientation and firm performance; technology transfer and spillovers; innovation and productivity; immigration; labor markets and multinational firms; and global value chains. This course has a mandatory attendance policy.
This is continuation of Multinational Firms in Global Economies (A). It is a graduate course focusing on the empirical aspects of multinational firms and international trade. The goal of the course is to familiarize graduate students with empirical work on multinational firms in the global economy, by reviewing the recent as well as older literature on this topic. Econometrics and statistical techniques for doing empirical work in international trade will also be discussed. We will focus on a variety of issues that are related to the multinational firm, beginning with trends in multinational activity, then moving to both horizontal and vertical theories of the multinational firm. Topics over the course of the semester will include patterns in the expansion of multinational firms, horizontal and vertical multinationals; the linkages between openness to trade and investment and growth; trade orientation and firm performance; technology transfer and spillovers; innovation and productivity; immigration; labor markets and multinational firms; and global value chains. This course has a mandatory attendance policy.
Students taking the course will be introduced to the seminal readings on a given method, have a hands-on discussion regarding their application often using a paper and dataset of the faculty member leading the discussion. The goal of the course is to make participants more informed users and reviewers of a wide variety of methodological approaches to Management research including Ordinary Least Squares, Discrete Choice, Count Models, Panel Data, Dealing with Endogeneity, Survival/failure/event history and event studies, experiments, factor analysis and structural equation modeling, hierarchical linear modeling, networks, comparative qualitative methods, coding of non-quantitative data, unstructured text and big data simulations.
New research from Wharton’s Britta Glennon and Exequiel “Zeke” Hernandez shows how employing skilled immigrants can give organizations a competitive edge.…Read MoreKnowledge at Wharton - 12/14/2021