Distorted Dynamics: The Impact of Policies on Firm Dynamics and Job Growth

2014 ◽  
pp. 49-80
Author(s):  
Marc Schiffbauer ◽  
Abdoulaye Sy ◽  
Sahar Hussain ◽  
Hania Sahnoun ◽  
Philip Keefer ◽  
...  
Keyword(s):  
Firm Dynamics ◽  
Job Growth ◽  
The Impact

Geographical Variation in Wages of Workers in Low-Wage Service Occupations: A U.S. Metropolitan Area Analysis

2019 ◽  
Vol 33 (2) ◽  
pp. 121-133 ◽  
Author(s):  
Donald R. Grimes ◽  
Penelope B. Prime ◽  
Mary Beth Walker
Keyword(s):  
Geographical Variation ◽  
Cost Of Living ◽  
Real Wages ◽  
Cross Sectional ◽  
Labor Market Conditions ◽  
Service Employees ◽  
Wage Rates ◽  
Housing Costs ◽  
Job Growth ◽  
The Impact

Low-wage, service-providing occupations accounted for almost half of all U.S. net job growth between 2006 and 2016. The authors study the variation in wages of low-wage service employees across U.S. metropolitan statistical areas, using cross-sectional estimations for 2016 for the 10th, 50th, and 90th percentile wage rates. New data are used to examine the impact of different cost-of-living adjustments on model results, arguing that the preferred adjustment separates housing costs from other costs. The main results are that strong labor market conditions positively contribute to real wages in most of the categories; minimum wages contribute positively to the 10th percentile of four occupations with evidence of influencing higher wages in the 50th and 90th percentiles; and using the authors’ cost-of-living adjustment and controlling for housing costs, the presence of an educated population did not substantially raise wages in the four low-wage, low-skill occupations.

scholarly journals Optimal Regulation in the Presence of Reputation Concerns *

2014 ◽  
Vol 130 (1) ◽  
pp. 415-464 ◽  
Author(s):  
Andrew Atkeson ◽  
Christian Hellwig ◽  
Guillermo Ordoñez
Keyword(s):  
Firm Dynamics ◽  
Total Production ◽  
Entry And Exit ◽  
Free Entry ◽  
Spot Prices ◽  
The Public ◽  
Equilibrium Prices ◽  
Random Growth ◽  
The Impact

Abstract In all markets, firms go through a process of creative destruction: entry, random growth, and exit. In many of these markets there are also regulations that restrict entry, possibly distorting this process. We study the public interest rationale for entry taxes in a general equilibrium model with free entry and exit of firms in which firm dynamics are driven by reputation concerns. In our model firms can produce high-quality output by making a costly but efficient initial unobservable investment. If buyers never learn about this investment, an extreme “lemons problem” develops, no firm invests, and the market shuts down. Learning introduces reputation incentives such that a fraction of entrants do invest. We show that if the market operates with spot prices, entry taxes always enhance the role of reputation to induce investment, improving welfare despite the impact of these taxes on equilibrium prices and total production.

scholarly journals Econometric Method for Estimating the Impact of Tourism Spending on County Employment in South Carolina

2020 ◽  
pp. 38-42
Author(s):  
Dr. John Jasina
Keyword(s):  
South Carolina ◽  
Local Economy ◽  
Regional Government ◽  
Regional Economies ◽  
South Carolina Department ◽  
Employment Impact ◽  
Outside Money ◽  
Job Growth ◽  
Accommodation Sector ◽  
The Impact

This article analyzes their university backgrounds. Tourism can promote job growth and income growth in regional economies. Policymakers in the regional government promote tourism to bring outside money into the local economy. Using accommodation tax revenue data published by the South Carolina Department of Revenue, this paper estimates the employment impact of tourism spending in South Carolina counties. The OLS regression results show that increased tourism spending, as measured by the accommodation tax, leads to increased total county employment, increased county employment in the accommodation sector (NAICS 721), increased county employment in full-service restaurant sector (NAICS 7221) and increased county employment in arts, entertainment, and recreation sector (NAICS 71).

scholarly journals What is the Impact of Increased Business Competition?

2019 ◽  
Vol 2019 (276) ◽  
Author(s):  
Sonia Feliz ◽  
Chiara Maggi
Keyword(s):  
Heterogeneous Firms ◽  
Firm Dynamics ◽  
Demand Elasticity ◽  
Employment Decisions ◽  
Firm Level ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Entry Time ◽  
Variable Markups ◽  
The Impact

This paper studies the macroeconomic effect and underlying firm-level transmission channels of a reduction in business entry costs. We provide novel evidence on the response of firms' entry, exit, and employment decisions. To do so, we use as a natural experiment a reform in Portugal that reduced entry time and costs. Using the staggered implementation of the policy across the Portuguese municipalities, we find that the reform increased local entry and employment by, respectively, 25% and 4.8% per year in its first four years of implementation. Moreover, around 60% of the increase in employment came from incumbent firms expanding their size, with most of the rise occurring among the most productive firms. Standard models of firm dynamics, which assume a constant elasticity of substitution, are inconsistent with the expansionary and heterogeneous response across incumbent firms. We show that in a model with heterogeneous firms and variable markups the most productive firms face a lower demand elasticity and expand their employment in response to increased entry.

scholarly journals THE IMPACT OF INSTITUTIONAL PERFORMANCE ON PAYMENT DYNAMICS: EVIDENCE FROM THE ITALIAN MANUFACTURING INDUSTRY

2020 ◽  
Vol 21 (5) ◽  
pp. 1285-1306
Author(s):  
Greta Falavigna ◽  
Roberto Ippoliti
Keyword(s):  
Manufacturing Industry ◽  
Waiting Times ◽  
Firm Dynamics ◽  
Policy Implications ◽  
Institutional Performance ◽  
Policy Makers ◽  
The Public ◽  
National Economic ◽  
The Impact

This work aims to shed new light on the relation between institutional performance and firm dynamics. Considering the Italian manufacturing industry and a panel of 3 years, the authors investigate the relation between the time needed by courts to enforce debtors’ obligations and the time needed by enterprises to repay their debts. In particular, we test the hypothesis that efficiency in settling mortgage foreclosure and bankruptcy cases can affect the creditors’ decision making on judicial disputes. According to our thesis, inordinately long waiting times to enforce credit rights may increase the contractual strength of debtors, further delaying payments. As shown by our results, there is a statistically significant positive relation between the enforcement of debtors’ obligations and the adopted payment index, confirming the key role of the judiciary in the dynamics of firms. Indeed, if the time needed to settle bankruptcy cases decreases by 25%, we can expect the payment index to decrease by 1%; while, focusing on foreclosure cases, we can expect the payment index to decrease by 2%. The policy implications of these results are rather compelling. Policy makers could reform foreclosure and bankruptcy procedures to support national economic growth, without additional burden on the public budget.

Revisiting the Impact of Prison Building on Job Growth: Education, Incarceration, and County-Level Employment, 1976–2004

2010 ◽  
Vol 91 (1) ◽  
pp. 228-244 ◽  
Author(s):  
Gregory Hooks ◽  
Clayton Mosher ◽  
Shaun Genter ◽  
Thomas Rotolo ◽  
Linda Lobao
Keyword(s):  
County Level ◽  
Job Growth ◽  
The Impact

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.

Sign in / Sign up

Export Citation Format

Share Document