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NBER Working Papers and Publications
|January 2018||Changing Business Dynamism and Productivity: Shocks vs. Responsiveness|
with John C. Haltiwanger, Ron S. Jarmin, Javier Miranda: w24236
The pace of job reallocation has declined in all U.S. sectors since 2000. In standard models, aggregate job reallocation depends on (a) the dispersion of idiosyncratic productivity shocks faced by businesses and (b) the marginal responsiveness of businesses to those shocks. Using several novel empirical facts from business microdata, we infer that the pervasive post-2000 decline in reallocation reflects weaker responsiveness in a manner consistent with rising adjustment frictions and not lower dispersion of shocks. The within-industry dispersion of TFP and output per worker has risen, while the marginal responsiveness of employment growth to business-level productivity has weakened. The responsiveness in the post-2000 period for young firms in the high-tech sector is only about half (i...
|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