Declining business dynamism in Europe : the role of shocks, market power, and technology / Filippo Biondi, Sergio Inferrera, Matthias Mertens, Javier Miranda ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Discovery
1860176828
URN
urn:nbn:de:gbv:3:2-992710
DOI
ISBN
ISSN
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, September 2023
Umfang
1 Online-Ressource (III, 92 Seiten, 1,16 MB) : Diagramme
Ausgabevermerk
Sprache
eng
Anmerkungen
Inhaltliche Zusammenfassung
We study the changing patterns of business dynamism in Europe after 2000 using novel micro-aggregated data that we collect for 19 European countries. In all of them, we document a decline in job reallocation rates that concerns most economic sectors. This is mainly driven by dynamics within sectors, size classes, and age classes rather than by compositional changes. Large and mature firms show the strongest decline in job reallocation rates. Simultaneously, the shares of employment and sales of young firms decline. Consistent with US evidence, firms’ employment changes have become less responsive to productivity. However, the dispersion of firms’ productivity shocks has decreased too. To enhance our understanding of these patterns, we derive a firm-level framework that relates changes in firms’ productivity, market power, and technology to job reallocation and firms’ responsiveness.
Schriftenreihe
IWH-CompNet discussion papers ; 2023, no. 2 (September 2023) ppn:887996302