Gross Job Creation, Gross Job Destruction and Employment Reallocation

Steve J. Davis, John Haltiwanger

NBER Working Paper No. 3728
Issued in June 1991
NBER Program(s):   EFG   LS

This study measures the heterogeneity of establishment-level employment changes in the U.S. manufacturing sector over the 1972 to 1986 period. We measure this heterogeneity in terms of the gross creation and destruction of jobs and the rate at which jobs are reallocated across plants. Our measurement efforts enable us to quantify the connection between job reallocation and worker reallocation, to evaluate theories of heterogeneity in plant-level employment dynamics, and to establish new results related to the cyclical behavior of the labor market.

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Published: Quarterly Journal of Economics, August 1992, pp.819-863, Volume 107, No. 3

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