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Job Creation, Job Destruction and Plant Turnover in Norvegian Manufacturing

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  • Tor Jakob KLETTE
  • Astrid MATHIASSEN

Abstract

We examine the magnitude and patterns of job creation and job destruction among Norwegian manufacturing plants. We find that 8.4 percent of the manufacturing jobs are eliminated annually, while new jobs constitute 7.1 percent of manufacturing employment in an average year. Even in a serious recession year, a considerable number of new jobs are created. About two thirds of the job reallocation take place within disaggregated industries. We show that entry and exit of plants are substantially more important for job reallocation in the long run than in the year-to-year changes. Small plants and small firms are net creators of jobs in the period we consider when manufacturing employment was declining. Our results provide support to selection models a la Jovanovic (1982), while vintage-capital models seem to be largely irrelevant as models of plant heterogeneity.

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Bibliographic Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (1996)
Issue (Month): 41-42 ()
Pages: 97-125

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Handle: RePEc:adr:anecst:y:1996:i:41-42:p:05

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Cited by:
  1. David B. Audretsch & Mark Sanders, 2008. "Globalization and the Rise of the Entrepreneurial Economy," Working Papers 08-21, Utrecht School of Economics.
  2. Hilde Christiane Bjørnland, 1996. "Sources of Business Cycles in Energy Producing Economies – The case of Norway and United Kingdom," Discussion Papers 179, Research Department of Statistics Norway.
  3. Taran Fæhn & Erling Holmøy, 2001. "Trade Liberalisation and Effects on Pollutive Emissions and Waste A General Equilibrium Assessment for Norway," Discussion Papers 298, Research Department of Statistics Norway.
  4. Erling Holmøy & Torbjørn Hægeland, 1997. "Aggregate Productivity Effects of Technology Shocks in a Model of Heterogeneous Firms: The Importance of Equilibrium Adjustments," Discussion Papers 198, Research Department of Statistics Norway.
  5. Audretsch, David B. & Sanders, Mark, 2009. "Technological Innovation, Entrepreneurship and Development," UNU-MERIT Working Paper Series 052, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  6. Massimo FLORIO & Emanuele OZZIMO, 2006. "Innovation strategies for SMEs and clusters: the challenges of a globalised Europe," Departmental Working Papers 2006-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Erling Holmøy, 2003. "Aggregate Industry Behaviour in a Monopolistic Competition Model with Heterogeneous Firms," Discussion Papers 352, Research Department of Statistics Norway.
  8. Taran Fæhn & Erling Holmøy, 1999. "Welfare Effects of Trade Liberalisation in Distorted Economies A Dynamic General Equilibrium Assessment for Norway," Discussion Papers 251, Research Department of Statistics Norway.
  9. David B. Audretsch & Max Keilbach, 2006. "Entrepreneurship, Growth and Restructuring," Papers on Entrepreneurship, Growth and Public Policy 2006-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  10. Reuben Gronau & Haim Regev, 1997. "The Demand for Labor and Job Turnover: Israeli Manufacturing 1970 - 1994," Working Papers 757, Princeton University, Department of Economics, Industrial Relations Section..
  11. Kjell G. Salvanes & Svein Erik Førre, 2001. "Job Creation, Heterogeneous Workers and Technical Change: Matched Worker/Plant Data Evidence from Norway," Discussion Papers 304, Research Department of Statistics Norway.
  12. Erling Holmøy & Torbjørn Hægeland, 2000. "Aggregate Productivity and Heterogeneous Firms," Discussion Papers 266, Research Department of Statistics Norway.

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