Job Creation And Destruction

Using the Longitudinal Research Data constructed by the Census Bureau, focuses on the U.S. manufacturing sector from 1972 to 1988 and develops a statistical portrait of the microeconomic adjustments to the many economic events that affect businesses and workers. Describes in detail the relationship between job creation and destruction and employer characteristics, including the relationship of job creation to employer size, industry, wage level, and productivity performance.

Looks into the costs and benefits of labour-market reallocation of US manufacturing industries. Includes a review of the literature on implications of gross flows for the costs of labour adjustment to international factors. Concludes that gross job flows may influence gross worker flows, and therefore, human capital investment, wages and worker welfare.

How to manage the unemployment that occurs in the process of the continuous job destruction and creation responsible for growth in today's economies: what recent economic research tells us about wages, incentives to work, and education.

This paper provides a description and detailed comparison of new data series on job creation and job destruction, constructed using establishment-level data sets, for the United States and Canada. The paper begins with a description of the data sets used and discussion of measurement issues related to job flows. It then examines and compares time-series fluctuations of job creation and destruction in the two countries and disaggregates average annual rates of job creation and destructed by two-digit industry. The subsequent section of the paper develops a simple model of the dynamics of job creation and destruction in order to provide structure for interpreting the similarities and differences in the behavior of job flows in Canada and the United States. The paper ends with basic estimates of the relative importance of country, industry, and year effects.

This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how changes in the federal fund rate affect gross job flows in the U.S. manufacturing industry, and it finds evidence of asymmetry. Tight policy increases job destruction and reduces net employment changes. Conversely, easy policy appears ineffective in stimulating job creation.

This study measures the heterogeneity of establishment-level employment changes in the U.S. manufacturing sector over the 1972 to 1986 period. We measure this heterogeneity in terms of the gross creation and destruction of jobs and the rate at which jobs are reallocated across plants. Our measurement efforts enable us to quantify the connection between job reallocation and worker reallocation, to evaluate theories of heterogeneity in plant-level employment dynamics, and to establish new results related to the cyclical behavior of the labor market.