Job Creation, Job Destruction, and Productivity Growth: The Role of Young Businesses

Posted: 7 Aug 2015

See all articles by John Haltiwanger

John Haltiwanger

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

Date Written: August 2015

Abstract

Recent improvements in the data infrastructure at US statistical agencies have dramatically enhanced the ability to measure and study job creation and job destruction. The longitudinal data now permit the tracking of all firms and establishments in the US private sector in a comprehensive and integrated manner. This allows researchers to distinguish between the contribution of new firms and that of new establishments. In addition, firm entry, growth, and survival dynamics can be tracked in terms of organic changes instead of changes associated with mergers and acquisitions or other forms of business ownership changes. These new developments have led to a burgeoning literature on US firm dynamics. The recent literature has especially focused on the role of young businesses for job and productivity growth. The findings from that literature are the focus of the current article. The recent developments are discussed in light of the large literature on firm dynamics (in terms of both theory and empirics) that has developed over the past few decades.

Suggested Citation

Haltiwanger, John C., Job Creation, Job Destruction, and Productivity Growth: The Role of Young Businesses (August 2015). Annual Review of Economics, Vol. 7, pp. 341-358, 2015. Available at SSRN: https://ssrn.com/abstract=2640083 or http://dx.doi.org/10.1146/annurev-economics-080614-115720

John C. Haltiwanger (Contact Author)

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 )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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

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

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