scholarly journals JOB FLOWS AND PRODUCTIVITY DYNAMICS: EVIDENCE FROM U.S. MANUFACTURING

2007 ◽  
Vol 11 (2) ◽  
pp. 175-201 ◽  
Author(s):  
CHRISTOPHER H. WHEELER
Keyword(s):  
Productivity Growth ◽  
A Priori ◽  
Job Creation ◽  
Positive Association ◽  
Annual Data ◽  
Job Flows ◽  
Job Destruction ◽  
Cross Sectional ◽  
High Productivity ◽  
Job Creation And Destruction

Through their influence on the cross-sectional distribution of productivity across firms and workers, job creation and destruction likely have an impact on the rate at which aggregate productivity changes over time. However, the nature of this effect is not, a priori, clear. Although a broad consensus has emerged suggesting that job destruction enhances productivity by eliminating inefficient production units, theories disagree with regard to the effect of job creation. If job flows represent the reallocation of labor from low- to high-productivity positions, job creation would boost productivity growth. If, instead, they represent changes in employment along a primarily low-skill dimension, the effect would be negative. This paper estimates the influence of job creation and destruction on total factor productivity (TFP) growth using annual data on four-digit U.S. manufacturing. As expected, the results reveal a positive association between job destruction and changes in TFP. Yet, they also indicate that job creation tends to have a negative effect on productivity growth.

scholarly journals How do regional economies respond to crises? The geography of job creation and destruction in Sweden (1990–2010)

2016 ◽  
Vol 24 (1) ◽  
pp. 87-103 ◽  
Author(s):  
Rikard H Eriksson ◽  
Emelie Hane-Weijman
Keyword(s):  
Employment Growth ◽  
Job Creation ◽  
Regional Economies ◽  
Job Destruction ◽  
Metropolitan Regions ◽  
Show Evidence ◽  
High Degree ◽  
Unrelated Variety ◽  
Job Creation And Destruction

Using Swedish longitudinal micro-data, the aim of this paper is to analyse how regional economies respond to crises. This is made possible by linking gross employment flows to the notion of regional resilience. Our findings indicate that despite a steady national employment growth, only the three metropolitan regions have fully recovered from the recession of 1990. Further, we show evidence of high levels of job creation and destruction in both declining and expanding regions and sectors, and that the creation of jobs is mainly attributable to employment growth in incumbent firms, while job destruction is primarily due to exits and micro-plants. Although the geography of resistance to crises and the ability of adaptability in the aftermath vary, our findings suggest that cohesive (i.e., with many skill-related industries) and diverse (i.e., with a high degree of unrelated variety) regions are more resilient over time. We also find that resistance to future shocks (e.g., the 2008 recession) is highly dependent on the resistance to previous crises. In all, this suggests that the long-term evolution of regional economies also influences their future resilience.

scholarly journals Sustained High Rates Of Job Creation And Destruction In Substate Economies

2011 ◽  
Vol 2 (9) ◽  
Author(s):  
Christine Doyle-Burke ◽  
Maureen Dunne ◽  
Marie McKinney ◽  
Svetlana R. Grutman ◽  
Michael Kreppel
Keyword(s):  
Business Cycle ◽  
Job Creation ◽  
Data Series ◽  
Metropolitan Statistical Area ◽  
Job Flows ◽  
Font Size ◽  
Job Reallocation ◽  
The Business Cycle ◽  
Statistical Area ◽  
Job Creation And Destruction

<p class="Ariel12" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-style: italic;">Widely utilized net employment change statistics actually mask an extremely volatile process of job creation and destruction.<span style="mso-spacerun: yes;">&nbsp; </span>In the past decade economists have addressed this problem by exploiting newly available longitudinal data series to estimate these job flows and the subsequent amount of job churning at the national, state and MSA level.<span style="mso-spacerun: yes;">&nbsp; </span>This study is unique in that it uses an innovative technique to capture job flows within and between industries at the local area level where longitudinal BLS data series are not available. </span></p><p class="Ariel12" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-style: italic;">&nbsp;</span></p><p class="Ariel12" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-style: italic;">The geographic unit of analysis in this paper is a Cohesive Commercial Statistical Area&trade; (CCSA), a substate aggregate of cities and towns sharing common economic interests but not a Metropolitan Statistical Area.<span style="mso-spacerun: yes;">&nbsp; </span>The paper examines job flows in two very different Massachusetts substate economies: the MetroWest CCSA, a technology sensitive research and development economy, and the South Shore CCSA, a mature economy with a competitive edge in financial services. This study establishes that a sizable portion of disaggregated job flows can be captured at a substate level using available employment data. Building upon techniques used in earlier studies, the authors confirmed very high levels of employment volatility, &ldquo;job churning&rdquo;, in both substate regions. </span></p><p class="Ariel12" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Arial;">&nbsp;</span></span></p><p class="Ariel12" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-style: italic;">The authors found that over two decades, job reallocation rates in MetroWest averaged 9%, affecting one out of 11 jobs annually. The study traced the pattern of job creation and destruction over the course of local business cycles and found that both job creation and destruction existed during all phases of the business cycle. Although, as expected, job creation dominated the expansion phase and destruction dominated the contraction phase, the total amount of job reallocation (creation plus destruction) remained relatively stable through all stages of the business cycle.<span style="mso-spacerun: yes;">&nbsp;&nbsp; </span>However, the composition of the job reallocation varied dramatically by stage of business cycle.<span style="mso-spacerun: yes;">&nbsp; </span>A Job Replacement Ratio has been developed as a quick test to confirm economic expansion or contraction and to focus economic development efforts.</span></p>

scholarly journals Opening Clauses in Collective Bargaining Agreements: More Flexibility to Save Jobs?

2013 ◽  
Vol 64 (2) ◽  
Author(s):  
Tobias Brändle ◽  
Wolf Dieter Heinbach
Keyword(s):  
Collective Bargaining ◽  
Explicit Knowledge ◽  
Manufacturing Sector ◽  
Job Creation ◽  
Job Flows ◽  
Job Destruction ◽  
Data Set ◽  
Job Growth ◽  
Iab Establishment Panel ◽  
The Impact

AbstractThis paper analyses the impact of opening clauses in German collective bargaining agreements (CBAs) on job flows. Opening clauses should provide firms with more flexibility in economic crises. Therefore, firms operating under a CBA with opening clauses are expected to have lower job turnover, in particular lower job destruction under bad business conditions, and - if job creation is not adversely affected - higher job growth. We analyse this question empirically using data from the IAB Establishment Panel, a large and representative data set on German establishments. We supplement the data with additional information on the existence of opening clauses in CBAs in the West German manufacturing sector (using the IAW Data Set on Opening Clauses). By means of a matching approach, we address selection problems in flexible CBAs and reveal that the existence of opening clauses has a positive, albeit not always significant, effect on job growth. In contrast, there are no significant effects on job destruction and job creation per se, and, based on information given in the IAB Establishment Panel itself, explicit knowledge of opening clauses or their application have no additional effect on job flows.

scholarly journals John Haltiwanger: recipient of the 2020 Global Award for Entrepreneurship Research

2021 ◽  
Author(s):  
Alex Coad ◽  
Martin Andersson ◽  
Magnus Henrekson ◽  
Sarah Jack ◽  
Mikael Stenkula ◽  
...  
Keyword(s):  
Public Policy ◽  
Economic Development ◽  
Productivity Growth ◽  
Firm Growth ◽  
Job Creation ◽  
Firm Level ◽  
Entrepreneurship Research ◽  
The World ◽  
Job Creation And Destruction

AbstractThe 2020 Global Award for Entrepreneurship Research has been awarded to Professor John Haltiwanger. John Haltiwanger has made significant contributions to the field of entrepreneurship by improving our understanding of job creation and destruction, productivity growth, and the role of small- and medium-sized firms (SMEs) in economic development. He has played a major role in the careful development of large, longitudinal firm-level datasets, and introduced a novel and widely adopted measure of firm growth that addresses previous statistical biases. His work has influenced public policy and national statistical offices around the world.

scholarly journals Do unions contribute to creative destruction?

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261212
Author(s):  
Harald Dale-Olsen
Keyword(s):  
Social Security ◽  
Productivity Growth ◽  
Job Creation ◽  
Creative Destruction ◽  
New Firms ◽  
Labour Costs ◽  
Plant Closures ◽  
The Impact ◽  
Job Creation And Destruction

We apply a shift-share approach and historical unionisation data from 1918 to study the impact of regional unionisation changes in Norway on regional wage and productivity growth, job-creation and -destruction and social security uptake during the period 2003–2012. As unionisation increases, wages grow. Lay-offs through plant closures and shrinking workplaces increase, causing higher retirement rates, while job creation, plant entry and other social security uptakes are unaffected. Productivity grows, partly by enhanced productivity among surviving and new firms and partly by less productive firms forced to close due to increased labour costs. Thus, unions promote creative destruction.

scholarly journals Local Job Flows in New Zealand

1970 ◽  
Author(s):  
David C Mare ◽  
Jason Timmins
Keyword(s):  
New Zealand ◽  
Employment Growth ◽  
Job Creation ◽  
Labour Markets ◽  
Job Flows ◽  
Local Labour Markets ◽  
Local Labour ◽  
Job Creation And Destruction

Small changes in the level of employment are generally the result of a large number of jobs being created and a roughly balancing number of jobs being destroyed In this paper we examine patterns of job creation and destruction for local labour markets in New Zealand between 1987 and 2003. The growth or decline of employment in local labour markets is far from homogeneous. The paper focuses on whether local labour markets experience greater employment growth following periods of high rates of simultaneous job creation and destruction (job churn). However, we find little evidence to support this hypothesis. The estimated effect of the level of job churn on future employment growth, within labour markets, was found to be statisticallyand economically insignificant.

scholarly journals Creative Destruction and Subjective Well-Being

2016 ◽  
Vol 106 (12) ◽  
pp. 3869-3897 ◽  
Author(s):  
Philippe Aghion ◽  
Ufuk Akcigit ◽  
Angus Deaton ◽  
Alexandra Roulet
Keyword(s):  
Negative Impact ◽  
Job Creation ◽  
Empirical Support ◽  
Well Being ◽  
Creative Destruction ◽  
Metropolitan Statistical Area ◽  
Subjective Well Being ◽  
Job Destruction ◽  
Cross Sectional ◽  
Individual Level

In this paper we analyze the relationship between turnover-driven growth and subjective well-being. Our model of innovation-led growth and unemployment predicts that: (i) the effect of creative destruction on expected individual welfare should be unambiguously positive if we control for unemployment, less so if we do not; (ii) job creation has a positive and job destruction has a negative impact on well-being; (iii) job destruction has a less negative impact in areas with more generous unemployment insurance policies; and (iv) job creation has a more positive effect on individuals that are more forward-looking. The empirical analysis using cross-sectional MSA (metropolitan statistical area)-level and individual-level data provide empirical support to these predictions. (JEL I31, J63, J65, O33, O38)

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