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Technology, job creation and job destruction in Finnish manufacturing

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  • Jari Vainiomaki
  • Seppo Laaksonen

Abstract

Job creation, destruction and reallocation rates is examined using data on Finnish manufacturing establishments for the period 1987-93, focusing on differences in these rates across the technology levels, and on the effects of the 1990s recession on the rates. The results indicate that the high technology sector has higher job creation and destruction rates, and it has responded to the recession somewhat differently than other sectors. It is also found that the high and low technology sectors are contributing differently to job reallocation: high technology is more important (compared to its employment share) in job creation, entry, and gross reallocation, while low technology is more important in job destruction, exit, and net job decrease.

Suggested Citation

  • Jari Vainiomaki & Seppo Laaksonen, 1999. "Technology, job creation and job destruction in Finnish manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 6(2), pages 81-88.
  • Handle: RePEc:taf:apeclt:v:6:y:1999:i:2:p:81-88
    DOI: 10.1080/135048599353681
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    References listed on IDEAS

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    1. John Baldwin & Timothy Dunne & John Haltiwanger, 1998. "A Comparison Of Job Creation And Job Destruction In Canada And The United States," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 347-356, August.
    2. J Konings, 1993. "Job Creation and Job Destruction in the UK Manufacturing Sector," CEP Discussion Papers dp0176, Centre for Economic Performance, LSE.
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    Cited by:

    1. Carlos Carreira & Paulino Teixeira, 2008. "Internal and external restructuring over the cycle: a firm-based analysis of gross flows and productivity growth in Portugal," Journal of Productivity Analysis, Springer, vol. 29(3), pages 211-220, June.
    2. Maliranta, Mika, 2001. "Productivity Growth and Micro-level Restructuring. Finnish experiences during the turbulent decades," Discussion Papers 757, The Research Institute of the Finnish Economy.
    3. Carlos Carreira & Paulino Teixeira, 2010. "Does Schumpeterian Creative Destruction Lead to Higher Productivity? The effects of firms’ entry," GEMF Working Papers 2010-20, GEMF, Faculty of Economics, University of Coimbra.

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