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Competition, Market Structure and Job Turnover

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  • Jesper Antelius
  • Lars Lundberg

Abstract

Data for rates of job turnover among plants in the Swedish economy in 1986-97 imply that in a typical year in a representative industry one out of six jobs disappeared, and a corresponding number of jobs were created. Job turnover is counter-cyclical, with no trend, and is higher for skilled jobs, and lower in manufacturing, than for all jobs. The rate of job turnover seems to be higher in industries with high rates of innovation and market growth, which may indicate that the volatility of firm specific demand and supply shocks is higher in such industries. Moreover, for given shocks, turnover is higher in industries with many small plants and low return on capital. The results support the hypothesis that market shares are more stable, and thus reallocation of jobs limited, in industries where firms have strong market power. Finally, there is less job turnover in export oriented industries where foreign ownership is widespread. Firms selling in many markets and/or producing in different locations may be able to even out the employment effects of shocks specific to individual markets and/or locations.
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Suggested Citation

  • Jesper Antelius & Lars Lundberg, 2003. "Competition, Market Structure and Job Turnover," Journal of Industry, Competition and Trade, Springer, vol. 3(3), pages 211-226, September.
    • Handle: RePEc:kap:jincot:v:3:y:2003:i:3:p:211-226
    DOI: 10.1023/A:1027420622150
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    Cited by:

    1. Arai, Mahmood & Thoursie, Peter Skogman, 2005. "Incentives and selection in cyclical absenteeism," Labour Economics, Elsevier, vol. 12(2), pages 269-280, April.
    2. Andersson, Fredrik & Vejsiu, Altin, 2001. "Determinants of plant closures in Swedish manufacturing," Working Paper Series 2001:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Nurmi, Satu, 2004. "Employment Dynamics and Openness to Trade in Finnish Manufacturing," Discussion Papers 956, The Research Institute of the Finnish Economy.
    4. Kameshwari Shankar & Suman Ghosh, 2005. "Favorable Selection in the Labor Market: A Theory of Worker Mobility in R&D Intensive Industries," Working Papers 05006, Department of Economics, College of Business, Florida Atlantic University.
    5. Jesper Antelius & Lars Lundberg, 2003. "Competition, Market Structure and Job Turnover," Journal of Industry, Competition and Trade, Springer, vol. 3(3), pages 211-226, September.
    6. Ricardo Mamede, 2009. "Toward an integrated approach to industry dynamics and labor mobility," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(1), pages 139-163, February.
    7. Conti, Maurizio & Sulis, Giovanni, 2016. "Human capital, employment protection and growth in Europe," Journal of Comparative Economics, Elsevier, vol. 44(2), pages 213-230.
    8. Andersson, Linda, 2008. "Net Taxes,Income Stabilization and Regional Job Flows in Sweden," Working Papers 2008:5, Örebro University, School of Business.
    9. Strauss, Tove, 2000. "Economic Reforms and the Poor," Working Paper Series 164, Trade Union Institute for Economic Research.
    10. Strauss, Tove, 2000. "Structural Reforms, Uncertainty, and Private Investment," Working Paper Series 165, Trade Union Institute for Economic Research.

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    More about this item

    Keywords

    job turnover; market structure;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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