IDEAS home Printed from https://ideas.repec.org/a/fip/fedbne/y2000imarp29-44.html
   My bibliography  Save this article

Role of firms in job creation and destruction in U.S. manufacturing

Author

Listed:
  • Scott Schuh
  • Robert K. Triest

Abstract

Research in recent years has documented extensively the fact that labor markets are characterized by large and pervasive flows of jobs among places of employment. However, virtually none of this research pertains to the role of the firm and its decisions in determining job creation and destruction. Previous research and data-gathering efforts have focused on employment at individual physical locations called establishments, or plants. This neglect leaves fundamental questions regarding the role of firms unanswered. Job reallocation occurring within firms may have very different causes and consequences from that occurring between firms. ; In this article the authors provide initial results from their ongoing study of the role of firms and corporate reorganization in the determination of job creation and destruction. Their results are striking: Most job flows are between firms for small firms, but intrafirm flows dominate for very large firms. Most plants are in volatile small firms, but employment is concentrated mainly in relatively stable large firms. While the small-firm sector seems to be in constant flux, the large manufacturing firm sector appears to operate in a relatively steady, and perhaps planned fashion.

Suggested Citation

  • Scott Schuh & Robert K. Triest, 2000. "Role of firms in job creation and destruction in U.S. manufacturing," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 29-44.
  • Handle: RePEc:fip:fedbne:y:2000:i:mar:p:29-44
    as

    Download full text from publisher

    File URL: http://www.bostonfed.org/economic/neer/neer2000/neer200c.htm
    Download Restriction: no

    File URL: http://www.bostonfed.org/economic/neer/neer2000/neer200c.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Scott Schuh & Robert K. Triest, 1998. "Job reallocation and the business cycle: new facts for an old debate," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 42(Jun), pages 271-357.
    2. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "Plant Turnover and Gross Employment Flows in the U.S. Manufacturing Sector," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 48-71, January.
    3. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, November.
    4. Scott Schuh & Robert K Triest, 1998. "Job Reallocation And The Business Cycle: New Facts An Old Debate," Working Papers 98-11, Center for Economic Studies, U.S. Census Bureau.
    5. John C. Haltiwanger & Scott Schuh, 1999. "Gross job flows between plants and industries," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 41-64.
    6. Zoltan J Acs & Catherine Armington, 1998. "Longitudinal Establishment And Enterprise Microdata (LEEM) Documentation," Working Papers 98-9, Center for Economic Studies, U.S. Census Bureau.
    7. Jeffrey C. Fuhrer & Scott Schuh, 1998. "Beyond shocks: what causes business cycles?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 42(Jun).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bla:pacecr:v:22:y:2017:i:4:p:677-701 is not listed on IDEAS
    2. Katariina Hakkala, 2006. "Corporate restructuring and labor productivity growth," Industrial and Corporate Change, Oxford University Press, vol. 15(4), pages 683-714, August.
    3. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2003. "The ups and downs of jobs in Georgia: what can we learn about employment dynamics from state administrative data?," FRB Atlanta Working Paper 2003-38, Federal Reserve Bank of Atlanta.
    4. Fernando Alvarez & Robert Shimer, 2011. "Search and Rest Unemployment," Econometrica, Econometric Society, vol. 79(1), pages 75-122, January.
    5. Petra Koudelkov√°, 2014. "Innovation in Small and Medium Enterprises in the Czech Republic," Central European Business Review, University of Economics, Prague, vol. 2014(3), pages 31-37.
    6. LIU Yang, 2017. "Effects of Wages and Job Productivity on Job Creation and Destruction: Evidence from Japanese division-level employment data," Discussion papers 17060, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    Keywords

    Labor market ; Manufactures;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:2000:i:mar:p:29-44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio). General contact details of provider: http://edirc.repec.org/data/frbbous.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.