Firm Dynamics, Job Creation and Entrepreneurship in the U.S. John Haltiwanger University of Maryland and NBER University of Maryland and NBER *Without implication, this presentation draws heavily on joint work with Steven Davis, Without implication, this presentation draws heavily on joint work with Steven Davis, Jason Faberman, Lucia Foster, Ron Jarmin, C.J. Krizan, Javier Miranda and Chad Syverson
30
Embed
Firm Job and Entrepreneurship in the U.S. - …econweb.umd.edu/~haltiwan/CEA_Feb_24.pdf · Firm Dynamics, Job Creation and Entrepreneurship in the ... draws heavily on joint work
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Firm Dynamics, Job Creation and Entrepreneurship in the U.S.
John HaltiwangerUniversity of Maryland and NBERUniversity of Maryland and NBER
*Without implication, this presentation draws heavily on joint work with Steven Davis,Without implication, this presentation draws heavily on joint work with Steven Davis, Jason Faberman, Lucia Foster, Ron Jarmin, C.J. Krizan, Javier Mirandaand Chad Syverson
OverviewOverview
• Declining trend in job and worker flows in U SDeclining trend in job and worker flows in U.S.– Accelerated post‐2000Is the U S becoming less dynamic and less– Is the U.S. becoming less dynamic and less flexible?
• Business Startups and Young Businesses• Business Startups and Young Businesses Disproportionately Create JobsD li i T d i B i S ( d• Declining Trend in Business Startups (and accordingly in Young Businesses)
Remarks By Federal Reserve Chairman Ben kBernanke
One leading explanation for the strong U S productivity…One leading explanation for the strong U.S. productivity growth is that labor markets in the United States tend to be more flexible and competitive, market characteristics that have allowed the United States to realize greater economichave allowed the United States to realize greater economic benefits from new technologies. For example, taking full advantage of new information and communication technologies may require extensive reorganization of worktechnologies may require extensive reorganization of work practices, the reassignment and retraining of workers, and ultimately some reallocation of labor among firms and industriesindustries…
August 31, 2006
10.010.0 Percent of Employment
Quarterly Job Creation and Destruction Rates, U.S. Private Sector
9.09.0
8.08.0
6.0
7.0
6.0
7.0
5.0
6.0
5.0
6.0
Job Destruction
Job Creation
4.04.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: BED and Davis, Faberman and Haltiwanger (2012)
Quarterly Job Creation and Hires Rates, U.S. Private Sector
18 011 0 Percent of Employment
17.0
18.0
10.0
11.0 p y
15.0
16.0
8.0
9.0
13.0
14.0
6.0
7.0
11 0
12.0
4 0
5.0
Job Creation (left axis)
10.0
11.0
3.0
4.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Hires (right axis)
Source: BED, JOLTS and Davis, Faberman and Haltiwanger (2012)
Quarterly Job Destruction, Layoffs and Quit Rates, U.S. Private Sector
10.010.0 Percent of Employment
9.09.0
8.08.0
6.0
7.0
6.0
7.0
5.05.0
Job Destruction
Layoffs
4.04.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Quits
Source: BED, JOLTS and Davis, Faberman and Haltiwanger (2012)
7.010.0 Percent of EmploymentJob Destruction (left axis)
Job Destruction, Layoffs and Unemployment Inflows are tightly linked
6.09.0
( )
Layoffs (Left Axis)
Unemployment Inflows, CPS (Left Axis)
Initial UI Claims (Right Axis)
5.08.0
3.0
4.0
6.0
7.0
2.0
3.0
5.0
6.0
1.04.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Davis, Faberman and Haltiwanger (2012)
Excess Worker Reallocation “Churn” and Job Reallocation
18 0
19.0
20.0 Percent of Employment
16.0
17.0
18.0
14.0
15.0
11.0
12.0
13.0 Job Reallocation
Excess Worker Reallocation
10.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
(Churn)
Source: BED and JOLTS – Tabulations from Davis, Faberman and Haltiwanger (2012)
Job Creation and Destruction RatesSource: U.S. Census Bureau, Business Dynamics Statistics