Haltiwanger (2011) - Job Creation And Firm Dynamics In The US

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Has year 2011
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  • Haltiwanger, J. (2011), "Job Creation and Firm Dynamics in the U.S.", paper presented at the NBER Innovation and Economic Policy Conference, April, NBER link pdf


The recent economic downturn and the relatively anemic recovery to date provokes much anxiety and concern among the public, the business sector, and the policy-making community. While there are signs of economic improvement, an open question is "what will be the nature of the recovery and the prospects for sustained growth?". In this paper, the contribution of business dynamism to U.S. job creation and productivity growth is explored. A key part of this exploration is to uncover the role of business startups, young firms and small firms to job creation and productivity growth. After first providing an overview of these dynamics, I discuss whether the nature of these dynamics has changed over the last few decades, the possible sources of these changes and the potential implications for future U.S. economic performance.