scholarly journals How Did Young Firms Fare During the Great Recession? Evidence from the Kauffman Firm Survey

2015 ◽  
Author(s):  
Rebecca Zarutskie ◽  
Tiantian Yang
Keyword(s):  
Great Recession ◽  
Young Firms ◽  
The Great Recession ◽  
Kauffman Firm Survey ◽  
Firm Survey

scholarly journals Cyclical Job Ladders by Firm Size and Firm Wage

2018 ◽  
Vol 10 (2) ◽  
pp. 52-85 ◽  
Author(s):  
John C. Haltiwanger ◽  
Henry R. Hyatt ◽  
Lisa B. Kahn ◽  
Erika McEntarfer
Keyword(s):  
Firm Size ◽  
Great Recession ◽  
Strong Evidence ◽  
Search Theory ◽  
Young Firms ◽  
The Great Recession ◽  
Worker Reallocation

We study whether workers progress up firm wage and size job ladders, and the cyclicality of this movement. Search theory predicts that workers should flow toward larger, higher paying firms. However, we see little evidence of a firm size ladder, partly because small, young firms poach workers from all other businesses. In contrast, we find strong evidence of a firm wage ladder that is highly procyclical. During the Great Recession, this firm wage ladder collapsed, with net worker reallocation to higher wage firms falling to zero. The earnings consequences from this lack of upward progression are sizable. (JEL D22, E24, E32, J31, J63, J64, L25)

scholarly journals Firm Entry and Exit during Recessions

2021 ◽  
Author(s):  
João Ayres ◽  
Gajendran Raveendranathan
Keyword(s):  
Great Recession ◽  
Firm Dynamics ◽  
Firm Entry ◽  
Entry And Exit ◽  
Young Firms ◽  
Collateral Constraint ◽  
The Great Recession ◽  
Productivity Shock ◽  
Quantitative Results ◽  
Firm Entry And Exit

We analyze shocks to productivity, collateral constraint (credit shock), firm operation, and labor disutility in a model of firm dynamics with entry and exit. Shocks to firm operation and labor disutility capture COVID-19 lockdowns. Compared to the productivity shock, the credit and the lockdown shocks generate larger changes in firm entry and exit. The credit shock accounts for lower entry, higher exit, and concentration of exit among young firms during the Great Recession. The lockdown shocks predict a large fall in entry and rise in exit followed by a sharp rebound. In both recessions, changes in entry and exit account for 10-20 percent of the fall in output and hours. Finally, we discuss how the modeling of potential entrants matters for the quantitative results.

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