Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing
AbstractWe use the ARD micro level data set for UK manufacturing to document job creation and job destruction (JC&D). Due to data limitations, previous UK studies were unable to use entry and exit in calculations of JC&D and/or were are at the firm rather than establishment/plant level and/or used data that understate the number of small businesses in the economy. Our data can overcome these problems being based on plant and establishment-level data from the UK Census of Production. We compute JC&D levels and rates and the contribution of small businesses for UK manufacturing between 1980 and 1991 and compare our findings with previous UK studies and other countries. We find: a) establishment (plant) job creation and destruction rates of 10.0% and 13.5% (11.2% and 14.7%) respectively, higher than other studies; b) large establishments (plants) are responsible for about 60% (55%) of job destruction; and c) small establishments (plants) are responsible for between 50% and 68% (57% and 70%) of job creation, depending on calculation method.
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Bibliographic InfoPaper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 461.
Date of creation: Jun 2002
Date of revision:
Small firms; Job creation and destruction;
Find related papers by JEL classification:
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-07-04 (All new papers)
- NEP-ENT-2002-07-04 (Entrepreneurship)
- NEP-LAB-2002-07-04 (Labour Economics)
- NEP-PBE-2002-07-04 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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