scholarly journals COVID-19 Is a Persistent Reallocation Shock

2021 ◽  
Vol 111 ◽  
pp. 287-291
Author(s):  
Jose Maria Barrero ◽  
Nicholas Bloom ◽  
Steven J. Davis ◽  
Brent H. Meyer
Keyword(s):  
Employment Growth ◽  
High Capacity ◽  
Firm Level ◽  
Growth Trends ◽  
Sales Revenue ◽  
Revenue Growth ◽  
Relative Employment ◽  
Work From Home ◽  
Looking Back

Drawing on data from the firm-level Survey of Business Uncertainty, we present three pieces of evidence that COVID-19 is a persistent reallocation shock. First, rates of excess job and sales reallocation over 24-month periods (looking back 12 months and ahead 12 months) have risen sharply since the pandemic struck, especially for sales. Second, as of December 2020, firm-level forecasts of sales revenue growth over the next year imply a continuation of recent changes, not a reversal. Third, COVID-19 shifted relative employment growth trends in favor of industries with a high capacity for employees to work from home.

scholarly journals COVID-19 Is a Persistent Reallocation Shock

2021 ◽  
Author(s):  
Jose Maria Barrero ◽  
Nick Bloom ◽  
Steven J. Davis ◽  
Brent H. Meyer
Keyword(s):  
Employment Growth ◽  
High Capacity ◽  
Firm Level ◽  
Growth Trends ◽  
Sales Revenue ◽  
Revenue Growth ◽  
Relative Employment ◽  
Work From Home ◽  
Look Back

Drawing on data from the firm-level Survey of Business Uncertainty, we present three pieces of evidence that COVID-19 is a persistent reallocation shock. First, rates of excess job and sales reallocation over 24-month periods have risen sharply since the pandemic struck, especially for sales. We compute these rates by aggregating over monthly firm-level observations that look back 12 months and ahead 12 months. Second, as of December 2020, firm-level forecasts of sales revenue growth over the next year imply a continuation of recent changes, not a reversal. Third, COVID-19 shifted relative employment growth trends in favor of industries with a high capacity of employees to work from home, and against those with a low capacity.

scholarly journals Firm-Level Automation: Evidence from the Netherlands

2020 ◽  
Vol 110 ◽  
pp. 389-393
Author(s):  
James Bessen ◽  
Maarten Goos ◽  
Anna Salomons ◽  
Wiljan van den Berge
Keyword(s):  
The Netherlands ◽  
Employment Growth ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Economic Effects ◽  
Firm Level ◽  
Revenue Growth ◽  
Automation Technology

Studying firm-level adjustments is important for understanding the economic effects of workplace automation. So far, emerging firm-level evidence is focused on robotics and the manufacturing sector. In this paper, we document that the adoption of automation technologies extends beyond manufacturing firms. We identify firm-level automation events and show that automating firms experience faster employment and revenue growth than do nonautomating firms. However, around automation events themselves, employment growth slows markedly. Notably, we find that these effects are similar for manufacturing and nonmanufacturing firms, suggesting that an increasing diffusion of automation technology has important consequences for firms and their workers.

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)

scholarly journals Production Efficiency Analysis of the Hungarian Meat Processing Industry

Competitio ◽  
2015 ◽  
Vol 14 (1) ◽  
pp. 23-42
Author(s):  
Zombor Berezvai
Keyword(s):  
Financial Crisis ◽  
Production Efficiency ◽  
Global Financial Crisis ◽  
High Capacity ◽  
Function Estimation ◽  
Meat Processing ◽  
Firm Level ◽  
Processing Industry ◽  
Market Situation ◽  
The Global Financial Crisis

This paper analyzes the performance of the Hungarian meat processing industry in the wake of the global financial crisis. Between 2011 and 2013 many high-capacity meat processors went bankrupt in Hungary. Possible reasons for that could be unfavorable market situation and inefficiency in production. In this paper, the latter hypothesis is examined. Two different types of production function estimation techniques are used to calculate firm-specific inefficiency estimates. Based on the estimation results, the lower bound of average firm-level efficiency is 0.50, while the upper bound is 0.88. Estimated firm-level inefficiencies are compared to the characteristics of the given firms. Pre-tax profit, company size and domestic ownership are associated with lesser inefficiency. On the other hand, time trend of inefficiencies indicate that the global financial crisis negatively affected the production efficiency of the meat processors. This can be a reason behind the bankruptcies happened. Journal of Economic Literature (JEL) codes: C33, L66

scholarly journals City economies and microbusiness growth

Urban Studies ◽  
2016 ◽  
Vol 54 (14) ◽  
pp. 3199-3217 ◽  
Author(s):  
Donald Houston ◽  
Darja Reuschke
Keyword(s):  
Employment Growth ◽  
Developed Countries ◽  
Business Owners ◽  
Firm Level ◽  
Urban Economic Development ◽  
Self Employment ◽  
Jobless Growth ◽  
Home Based ◽  
Level Data ◽  
Different Types

In developed countries, microbusinesses (those employing fewer than 10 people) and home-based businesses have been systematically overlooked in urban economic development thinking. This article assesses the influence of city location and being run from the business owner’s home on microbusiness growth, based on empirical analysis of panel firm-level data over a four-year period during the UK’s long boom. The analysis reveals that cities provide benefits to microbusinesses for turnover growth but not for employment growth – suggesting that the additional growth induced by cities for microbusinesses may be jobless growth. However, in the case of microbusinesses run from the owner’s home, cities facilitate growth into medium-sized businesses (with 50+ staff). In conclusion, microbusinesses, including those run from business owners’ homes, are integral to the evolution and dynamics of urban economies and essential to understanding the nature of growth in cities. Agglomeration theory needs to say more about how urban agglomeration benefits firms of different types and sizes, and small business and self-employment research needs to say more about the influence of location, in particular cities. How businesses use both commercial and residential property are integral to the nature of growth in cities.

scholarly journals Empowering Cities: Good for Growth? Evidence from the People's Republic of China

2018 ◽  
Vol 35 (1) ◽  
pp. 175-195
Author(s):  
Megha Mukim ◽  
T. Juni Zhu
Keyword(s):  
Gross Domestic Product ◽  
Local Governments ◽  
Credit Constraints ◽  
High Capacity ◽  
Economic Outcomes ◽  
Firm Level ◽  
Access To Credit ◽  
Republic Of China ◽  
Firm Outcomes ◽  
Local Leaders

This paper utilizes a countrywide process of county-to-city upgrading in the 1990s to identify whether extending the powers of urban local governments leads to better firm outcomes. The paper hypothesizes that since local leaders in newly promoted cities have an incentive to utilize their new administrative remit to maximize gross domestic product and employment, there should be improvements in economic outcomes. In fact, aggregate firm-level outcomes do not necessarily improve after county-to-city graduation. However, state-owned enterprises perform better after graduation, with increased access to credit through state-owned banks as a possible explanation. Importantly, newly promoted cities with high capacity generally produce better aggregate firm outcomes compared with newly promoted cities with low capacity. The conclusions are twofold. First, relaxing credit constraints for firms could lead to large increases in their operations and employment. Second, increasing local government's administrative remit is not enough to lead to better firm and economic outcomes; local capacity is of paramount importance.

scholarly journals Employment Effects of Innovation at the Firm Level

2007 ◽  
Vol 227 (3) ◽  
Author(s):  
Stefan Lachenmaier ◽  
Horst Rottmann
Keyword(s):  
Employment Growth ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Employment Effects ◽  
Process Innovations ◽  
Positive Effects ◽  
Product Innovations ◽  
Patent Applications ◽  
Product And Process ◽  
Positive Effect

SummaryThis paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel dataset of German manufacturing firms. The overall effect of innovations on employment often remains unclear in theoretical contributions due to reverse effects. We distinguish between product and process innovations and additionally introduce different innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects for process innovations being slightly higher. For product innovations that involved patent applications we can identify an additional positive effect on employment.

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