Lost generations of firms and aggregate labor market dynamics
Can the unprecedented lack of startups during the U.S. Great Recession have persistently negative effects? While fewer firms hiring workers can mechanically reduce employment for many years, this may be offset by feedback effects on lower wages, slacker labor markets and higher profits. An estimated...
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| Format: | Journal article |
| Language: | English |
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Elsevier
2019
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| _version_ | 1797053242814758912 |
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| author | Sedláček, P |
| author_facet | Sedláček, P |
| author_sort | Sedláček, P |
| collection | OXFORD |
| description | Can the unprecedented lack of startups during the U.S. Great Recession have persistently negative effects? While fewer firms hiring workers can mechanically reduce employment for many years, this may be offset by feedback effects on lower wages, slacker labor markets and higher profits. An estimated model of firm dynamics and frictional labor markets suggests that such feedback effects are too weak to offset the direct impact of fewer startups. Had firm entry remained constant during the Great Recession, output would have recovered 4–6 years earlier and unemployment would have been 0.5 percentage points lower even 10 years after the crisis. |
| first_indexed | 2024-03-06T18:41:13Z |
| format | Journal article |
| id | oxford-uuid:0cecf1fd-975f-4b68-8457-6d992f654c02 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T18:41:13Z |
| publishDate | 2019 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:0cecf1fd-975f-4b68-8457-6d992f654c022022-03-26T09:37:47ZLost generations of firms and aggregate labor market dynamicsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:0cecf1fd-975f-4b68-8457-6d992f654c02EnglishSymplectic Elements at OxfordElsevier2019Sedláček, PCan the unprecedented lack of startups during the U.S. Great Recession have persistently negative effects? While fewer firms hiring workers can mechanically reduce employment for many years, this may be offset by feedback effects on lower wages, slacker labor markets and higher profits. An estimated model of firm dynamics and frictional labor markets suggests that such feedback effects are too weak to offset the direct impact of fewer startups. Had firm entry remained constant during the Great Recession, output would have recovered 4–6 years earlier and unemployment would have been 0.5 percentage points lower even 10 years after the crisis. |
| spellingShingle | Sedláček, P Lost generations of firms and aggregate labor market dynamics |
| title | Lost generations of firms and aggregate labor market dynamics |
| title_full | Lost generations of firms and aggregate labor market dynamics |
| title_fullStr | Lost generations of firms and aggregate labor market dynamics |
| title_full_unstemmed | Lost generations of firms and aggregate labor market dynamics |
| title_short | Lost generations of firms and aggregate labor market dynamics |
| title_sort | lost generations of firms and aggregate labor market dynamics |
| work_keys_str_mv | AT sedlacekp lostgenerationsoffirmsandaggregatelabormarketdynamics |