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 Zombie Lending and Depressed Restructuring in Japan

2008 ◽  
Vol 98 (5) ◽  
pp. 1943-1977 ◽  
Author(s):  
Ricardo J Caballero ◽  
Takeo Hoshi ◽  
Anil K Kashyap
Keyword(s):  
Market Share ◽  
Employment Growth ◽  
Job Creation ◽  
Firm Level ◽  
Competitive Process ◽  
Lower Productivity ◽  
Zombie Lending ◽  
Job Creation And Destruction ◽  
Productivity Gap

Large Japanese banks often engaged in sham loan restructurings that kept credit flowing to otherwise insolvent borrowers (which we call zombies). We examine the implications of suppressing the normal competitive process whereby the zombies would shed workers and lose market share. The congestion created by the zombies reduces the profits for healthy firms, which discourages their entry and investment. We confirm that zombie-dominated industries exhibit more depressed job creation and destruction, and lower productivity. We present firm-level regressions showing that the increase in zombies depressed the investment and employment growth of non-zombies and widened the productivity gap between zombies and non-zombies. (JEL G21, G32, L25)

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.

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 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 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 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.

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