Local spillovers from high-growth businesses: do gazelles cannibalize or promote employment growth?

2020 ◽  
Author(s):  
Daniel Crown ◽  
Timothy Wojan ◽  
Anil Rupasingha
Keyword(s):  
Employment Growth ◽  
Spillover Effect ◽  
Job Creation ◽  
High Growth ◽  
Job Destruction ◽  
Metropolitan Statistical Areas ◽  
The Impact

Abstract This article estimates the employment spillover effect of high-growth businesses on establishment-level employment growth. We assess whether the impact depends on the rurality of the region, and whether nearby establishments are high-growth businesses themselves. We also estimate the within-industry impact of high-growth establishments (HGEs). The findings show no impact of HGEs on net employment growth, due to equal gross job creation and job destruction on average. However, we find that within the same industry, HGEs contribute to positive net employment growth, with large and nearly equal impacts on existing HGEs across both Metropolitan Statistical Areas regions and non-metro counties.

The impact of regional location factors on job creation, job destruction and employment growth in manufacturing

2012 ◽  
Vol 33 (1) ◽  
pp. 23-48 ◽  
Author(s):  
Raimund Krumm ◽  
Harald Strotmann
Keyword(s):  
Employment Growth ◽  
Job Creation ◽  
Location Factors ◽  
Job Destruction ◽  
Regional Location ◽  
The Impact

Forecasting the Impact of Automation on Jobs

2021 ◽  
pp. 21-40
Author(s):  
Cynthia Estlund
Keyword(s):  
Labor Market ◽  
Job Creation ◽  
Job Destruction ◽  
Advanced Education ◽  
Comparative Advantages ◽  
Human Skills ◽  
Minority View ◽  
The Impact

Chapter 2 digs more deeply into the outlook for job destruction and job creation, and adds some theory and data to Chapter 1’s anecdotes about how machines can replace human workers. It reports an emerging consensus among leading scholars that automation is already contributing to the polarization, or hollowing out, of the labor market by destroying more middle-skill jobs than it is creating. And it reports on the more concerning prediction—still a minority view though more than plausible—that machines are destined to produce overall net job losses as they continually whittle away at humans’ comparative advantages. The chapter arrives at a working premise for the rest of the book that straddles those two forecasts: We are facing a future of less work—at least less work for those with ordinary human skills and without advanced education, and perhaps less work overall. While that straddle might seem untenable, either forecast is similarly bleak for most workers—if we do not respond constructively; and when it comes to the shape of a constructive response, both forecasts point largely in the same direction.

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 Increasing the Cost of Informal Workers: Evidence from Mexico

2020 ◽  
Author(s):  
Brenda Samaniego de la Parra ◽  
León Fernández Bujanda
Keyword(s):  
Employment Growth ◽  
Job Creation ◽  
Household Surveys ◽  
Job Destruction ◽  
Work Site ◽  
Administrative Records ◽  
Informal Workers ◽  
The Cost

This paper estimates the effects of increasing the cost of informal jobs on formal firms' and workers' outcomes. We create novel datasets combining administrative records and household surveys data, and exploit exogenous variation in this cost generated by over 480,000 random work-site inspections in Mexico. Increasing the cost of informal jobs at formal firms leads to lower employment growth, lower formal job creation, and higher formal and informal job destruction. For informal workers, inspections increase the probability of being formalized at the inspected firm, but also increase the probability of dissolving the informal match. Transitioning to a formal job due to an inspection increases the probability of being poached to a new, formal job.

scholarly journals The Impact of Globalization on Establishment-Level Employment Dynamics in Japan

2015 ◽  
Vol 14 (2) ◽  
pp. 41-65 ◽  
Author(s):  
Naomi Kodama ◽  
Tomohiko Inui
Keyword(s):  
Multinational Enterprises ◽  
Census Data ◽  
Employment Growth ◽  
Job Creation ◽  
Manufacturing Firms ◽  
Employment Dynamics ◽  
Japanese Firms ◽  
Economic Census ◽  
The Impact ◽  
Overseas Subsidiaries

This study applies Davis, Haltiwanger, and Schuh's method ( 1996 ) to measure job creation/destruction rates of establishments in manufacturing firms using Japanese Economic Census data in 2006 and 2009. Results show that the decrease in net domestic employment arises mainly from firms without subsidiary companies, and non-expanding multinational enterprises. Domestic employment increases when the number of overseas subsidiaries increases. Both job creation/destruction rates of multinational enterprises are high, and the globalization of Japanese firms accelerates de-industrialization in Japan. The job creation and the net employment growth rates of establishments belonging to small-sized firms are lower than those in large-sized firms.

scholarly journals Job Creation and Job Destruction in Great Britain in the 1980s

ILR Review ◽  
1996 ◽  
Vol 50 (1) ◽  
pp. 17-38 ◽  
Author(s):  
David G. Blanchflower ◽  
Simon M. Burgess
Keyword(s):  
Service Sector ◽  
Employment Growth ◽  
Manufacturing Sector ◽  
Industrial Relations ◽  
Job Creation ◽  
Job Destruction ◽  
Manufacturing Plants ◽  
Establishment Size ◽  
Private Service ◽  
Using Data

Using data from the Workplace Industrial Relations Surveys of 1980, 1984, and 1990, the authors investigate processes of job creation and job destruction in Britain. They find that rates of employment growth, job creation, and job destruction were higher at the end of the 1980s than at the beginning. Both job creation and job destruction were extremely concentrated: about 50% of each was accounted for by just 4% of continuing establishments. Employment growth was apparently more variable in manufacturing plants than in private service sector workplaces. Some variables negatively related to employment growth were unionization, establishment size, establishment age, and location in the private manufacturing sector (versus private service sector).

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 Job creation, job destruction and employment growth in transition countries in the 90s

2003 ◽  
Vol 27 (2) ◽  
pp. 129-154 ◽  
Author(s):  
Giulia Faggio ◽  
Jozef Konings
Keyword(s):  
Employment Growth ◽  
Job Creation ◽  
Transition Countries ◽  
Job Destruction

Shared Prosperity (or Lack Thereof) in the Sharing Economy

2022 ◽  
Author(s):  
Mohammed Alyakoob ◽  
Mohammad S. Rahman
Keyword(s):  
New York ◽  
Employment Growth ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Sharing Economy ◽  
Economic Benefits ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Job Growth ◽  
The Impact

This paper examines the potential economic spillover effects of a home sharing platform—Airbnb—on the growth of a complimentary local service—restaurants. By circumventing traditional land-use regulations and providing access to underutilized inventory, Airbnb attracts visitors to outlets that are not traditional tourist destinations. Although visitors generally bring significant spending power, it is unclear whether visitors use Airbnb only primarily for lodging and thus do not contribute to the adjacent economy. To evaluate this, we focus on the impact of Airbnb on restaurant employment growth across locales in New York City (NYC). Specifically, we focus on areas in NYC that did not attract a significant tourist volume prior to the emergence of a home-sharing service. Our results indicate a salient and economically significant positive spillover effect on restaurant job growth in an average NYC locality. A one-percentage-point increase in the intensity of Airbnb activity (Airbnb reviews per household) leads to approximately 1.7% restaurant employment growth. Since home-sharing visitors are lodging in areas that are not accustomed to tourists, we also investigate the demographic and market-structure-related heterogeneity of our results. Notably, restaurants in areas with a relatively high number of White residents disproportionately benefit from the economic spillover of Airbnb activity, whereas the impact in majority-Black areas is not statistically significant. Thus, policy makers must consider the heterogeneity in the potential economic benefits as they look to regulate home-sharing activities.

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