Abstract.
An important new literature on gross employment flows has produced a great outpouring of stylized facts. In this paper we examine one aspect of this literature through the lens of dynamic models and theories of industrial evolution. We extend the Davis and Haltiwanger methodology for analysis of the persistence of gross job creation, distinguishing the persistence of new jobs from business births and from expansions. The persistence rates are then compared with those expected in each sector if average annual job creation and destruction were distributed across the business population independently of the prior year’s changes. The results provide a basis for discussing aspects of the different dynamics of job creation in services and manufacturing.
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JEL Classification:
J6, L6, L8, M13
Correspondence to: Zoltan J. Acs
This research was conducted while the authors were research associates at the Center for Economic Studies of the U.S. Bureau of the Census, with support from the American Statistical Association/National Science Foundation/Census Bureau Research Program under grant number SBR 9808594. We would like to thank Radwan Saade for valuable research assistance, seminar participants at the International J. A. Schumpeter Society Conference in Manchester, England and two anonymous referees for helpful comments. The research results and conclusions expressed in this paper do not necessarily represent the views of the Census Bureau or of the Center for Economic Studies. The usual caveat applies.
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Armington, C., Acs, Z.J. Job creation and persistence in services and manufacturing. J. Evol. Econ. 14, 309–325 (2004). https://doi.org/10.1007/s00191-004-0194-z
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DOI: https://doi.org/10.1007/s00191-004-0194-z