The Role of Entrepreneurship in US Job Creation and Economic Dynamism
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The United States has long been viewed as having among the world’s most entrepreneurial, dynamic, and flexible economies and the outcomes of entrepreneurship are more heterogeneous than commonly appreciated and appear to be evolving in ways that could raise concern as discussed by the authors.Abstract:
The United States has long been viewed as having among the world’s most entrepreneurial, dynamic, and flexible economies. It is often argued that this dynamism and flexibility has enabled the US economy to adapt to changing economic circumstances and recover from recessions in a robust manner. While the evidence provides broad support for this view, the outcomes of entrepreneurship are more heterogeneous than commonly appreciated and appear to be evolving in ways that could raise concern. Evidence along a number of dimensions and a variety of sources points to a US economy that is becoming less dynamic. Of particular interest are declining business startup rates and the resulting diminished role for dynamic young businesses in the economy. We begin by describing how the concept of entrepreneurship is reflected in existing data on firm age and size. The recent addition of firm age to official statistics represents a dramatic improvement in the information available to entrepreneurship researchers. We then turn to a discussion of the role of startup firms in job creation. Business startups account for about 20 percent of US gross (total) job creation while high-growth businesses (which are disproportionately young)read more
Citations
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References
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What Determines Productivity
TL;DR: The authors surveys and evaluates recent empirical work addressing the question of why businesses differ in their measured productivity levels, and lays out what I see are the major questions that research in the area should address going forward.
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Job Creation and Destruction
TL;DR: The most complete plant-level data source currently available, the Longitudinal Research Data constructed by the Census Bureau, is used in this article to study the U.S. manufacturing sector from 1972 to 1988 and develop a statistical portrait of the microeconomic adjustments to the many economic events that affect businesses and workers.
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Job Creation and Destruction
TL;DR: The most complete plant-level data source currently available, the Longitudinal Research Data constructed by the Census Bureau, is used in this paper to study the U.S. manufacturing sector from 1972 to 1988 and develop a statistical portrait of the microeconomic adjustments to the many economic events that affect businesses and workers.
Posted Content
Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?
TL;DR: In this article, the authors investigate the nature of selection and productivity growth using data from industries where they observe producer-level quantities and prices separately, and show that there are important differences between revenue and physical productivity.
Journal ArticleDOI
Who Creates Jobs? Small versus Large versus Young
TL;DR: In this article, the authors used data from the Census Bureau's Business Dynamics Statistics and Longitudinal Business Database to explore the many issues at the core of this ongoing debate and find that the relationship between firm size and employment growth is sensitive to these issues.