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Job creation and persistence in services and manufacturing

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  • Catherine Armington
  • Zoltan Acs

Abstract

An important new literature on gross employment flows has produced a great outpouring of stylized facts. In this paper we examine one aspect of this literature through the lens of dynamic models and theories of industrial evolution. We extend the Davis and Haltiwanger methodology for analysis of the persistence of gross job creation, distinguishing the persistence of new jobs from business births and from expansions. The persistence rates are then compared with those expected in each sector if average annual job creation and destruction were distributed across the business population independently of the prior year’s changes. The results provide a basis for discussing aspects of the different dynamics of job creation in services and manufacturing. Copyright Springer-Verlag Berlin/Heidelberg 2004

Suggested Citation

  • Catherine Armington & Zoltan Acs, 2004. "Job creation and persistence in services and manufacturing," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 309-325, July.
    • Handle: RePEc:spr:joevec:v:14:y:2004:i:3:p:309-325
    DOI: 10.1007/s00191-004-0194-z
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    Cited by:

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    2. Zoltán J. Ács & Pamela Mueller, 2015. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 16, pages 304-319, Edward Elgar Publishing.
    3. Svein Olav Nås, 2007. "Industrial structure, business demography and innovation," Working Papers on Innovation Studies 20070611, Centre for Technology, Innovation and Culture, University of Oslo.
    4. Martin-Barroso, David & Nuñez-Serrano, Juan Andres & Turrion, Jaime & Velazquez, Francisco J., 2011. "The European Map of Job Flows," MPRA Paper 33602, University Library of Munich, Germany, revised 2011.
    5. Karl Wennberg, 2009. "Knowledge combinations and the survival of financial services ventures," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 259-276, April.
    6. Delmar, Frédéric & McKelvie, Alexander & Wennberg, Karl, 2013. "Untangling the relationships among growth, profitability and survival in new firms," Ratio Working Papers 205, The Ratio Institute.
    7. Lisa J. Servon & Robert W. Fairlie & Blaise Rastello & Amber Seely, 2010. "The Five Gaps Facing Small and Microbusiness Owners: Evidence From New York City," Economic Development Quarterly, , vol. 24(2), pages 126-142, May.
    8. Boyang You & Conglai Fan, 2020. "An Empirical Study of Net Job Creation, Firm Size and Firm Age in China," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 220-231, January.
    9. Bhaskar Jyoti Neog & Bimal Kishore Sahoo, 2020. "Job Reallocation Dynamics in India: Evidence from Large Manufacturing Plants," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 934-959, August.
    10. Huber, Peter & Oberhofer, Harald & Pfaffermayr, Michael, 2017. "Who creates jobs? Econometric modeling and evidence for Austrian firm level data," European Economic Review, Elsevier, vol. 91(C), pages 57-71.
    11. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," WIFO Working Papers 435, WIFO.
    12. Marco Corsino & Roberto Gabriele & Sandro Trento, 2010. "Job flows in Italian SMEs: a longitudinal analysis of growth, size and age," DISA Working Papers 1008, Department of Computer and Management Sciences, University of Trento, Italy, revised 22 Dec 2010.
    13. McKelvie, Alexander & Brattström, Anna & Wennberg, Karl, 2013. "The Relationship Between Innovation and New Firm Growth," Ratio Working Papers 206, The Ratio Institute.

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    More about this item

    Keywords

    Entrepreneurship; Industry evolution; Job flows; Services;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L8 - Industrial Organization - - Industry Studies: Services
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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