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
Loading...
Download1.06 MB
Declining business dynamism in Europe
Discovery
1883438489
URN
urn:nbn:de:gbv:3:2-1053129
DOI
ISBN
ISSN
Koordinaten
Skalierung
dc.contributor.contributor
Other contributor
Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2024?]
Content
1 Online-Ressource (III, 43, 30 Seiten, 1,05 MB)
Edition
This version: March 7, 2024
Language
eng
Comment
Literaturverzeichnis: Seite 39-43 und Seite 30
Abstract
We study changes in business dynamism in Europe after 2000 using novel micro-aggregated data that we collected for 19 European countries. In all countries, we document a broad-based decline in job reallocation rates that concerns most economic sectors and size classes. This decline is mainly driven by dynamics within sectors, size, and age classes rather than by compositional changes. Large and mature firms experience the strongest decline in job reallocation rates. Simultaneously, the employment shares of young firms decline. Consistent with US evidence, firms’ employment has become less responsive to productivity shocks. However, the dispersion of firms’ productivity shocks has decreased too. To enhance our understanding of these patterns, we derive and apply a novel firm-level framework that relates changes in firms’ sales, market power, wages, and production technology to firms’ responsiveness and job reallocation.
Series
IWH-CompNet discussion papers ; 2023, no. 2 (September 2023) [rev.] ppn:887996302