Working Paper: CEPR ID: DP912
Authors: David G. Blanchflower; Simon M. Burgess
Abstract: This paper characterizes the processes of job creation and job destruction (JC&D) in Britain, and provides more `stylized facts' to hold up against models of JC&D. The analysis is based on three large cross-sections of continuing plants in Britain. The issues examined include the diversity of employment growth rates and the correspondingly substantial JC&D rates. We show that both job creation and destruction are extremely concentrated. The top decile of job creators seem to be made up of large firms growing moderately and medium-sized firms growing rapidly.
Keywords: job creation; job destruction; reallocation; growth of firms
JEL Codes: E32; J23; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Plant Size (L25) | Job Creation (J23) |
| Plant Size (L25) | Job Destruction (J63) |
| Market Conditions (D49) | Job Creation (J23) |
| Market Conditions (D49) | Job Destruction (J63) |
| Plant Characteristics (Q16) | Job Flows (J68) |
| Size and Growth Rate (L25) | Job Creation (J23) |
| Plant Performance (D29) | Job Losses (J63) |
| Sectoral Characteristics (L52) | Employment Stability (J63) |
| Plant Age (Q16) | Job Turnover (J63) |