A Comparison of Job Creation and Job Destruction in Canada and the United States

34 Pages Posted: 1 Sep 2000

See all articles by John R. Baldwin

John R. Baldwin

Statistics Canada - Microeconomic Analysis Division

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Timothy Dunne

Federal Reserve Bank of Cleveland

Date Written: May 1994

Abstract

In recent years a growing number of countries have constructed data series on job creation and job destruction using establishment- level data sets. This paper provides a description and detailed comparison of these new data series for the United States and Canada. First, the Canadian and United States industry-level job creation and destruction rates are remarkably similar. Industries with high (low) job creation in the U.S. exhibit high (low) job creation in Canada. The same is true for job destruction. In addition, the overall magnitude of gross job flows in the two countries is comparable. Second, the time-series patterns of creation and destruction are qualitatively similar but do differ in a number of important respects. In both countries, job destruction is much more cyclically volatile than job creation. This cyclical asymmetry is, however, more pronounced in the United States. The paper finishes with a characterization of the job flow patterns using a modified Blanchard and Diamond (1992) model.

Suggested Citation

Baldwin, John R. and Haltiwanger, John C. and Dunne, Timothy, A Comparison of Job Creation and Job Destruction in Canada and the United States (May 1994). NBER Working Paper No. w4726. Available at SSRN: https://ssrn.com/abstract=240789

John R. Baldwin (Contact Author)

Statistics Canada - Microeconomic Analysis Division ( email )

24 Floor - R.H.Coats Building
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Ottawa, Ontaria K1A 0T6
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613-951-8588 (Phone)
613-951-5403 (Fax)

John C. Haltiwanger

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER) ( email )

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Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Timothy Dunne

Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101-1387
United States

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