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NBER Working Papers and Publications
|December 2015||Where Has All The Skewness Gone? The Decline In High-Growth (Young) Firms In The U.S.|
with John Haltiwanger, Ron S. Jarmin, Javier Miranda: w21776
The pace of business dynamism and entrepreneurship in the U.S. has declined over recent decades. We show that the character of that decline changed around 2000. Since 2000 the decline in dynamism and entrepreneurship has been accompanied by a decline in high-growth young firms. Prior research has shown that the sustained contribution of business startups to job creation stems from a relatively small fraction of high-growth young firms. The presence of these high-growth young firms contributes to a highly (positively) skewed firm growth rate distribution. In 1999, a firm at the 90th percentile of the employment growth rate distribution grew about 31 percent faster than the median firm. Moreover, the 90-50 differential was 16 percent larger than the 50-10 differential reflecting the positive...
Published: Ryan A. Decker & John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2016. "Where has all the skewness gone? The decline in high-growth (young) firms in the U.S.," European Economic Review, vol (). citation courtesy of