Journal article
Lost generations of firms and aggregate labor market dynamics
- Abstract:
- 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.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
-
-
(Preview, Accepted manuscript, pdf, 452.0KB, Terms of use)
-
- Publisher copy:
- 10.1016/j.jmoneco.2019.01.007
Authors
- Publisher:
- Elsevier
- Journal:
- Journal of Monetary Economics More from this journal
- Volume:
- 111
- Pages:
- 16-31
- Publication date:
- 2019-01-09
- Acceptance date:
- 2019-01-08
- DOI:
- EISSN:
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1873-1295
- ISSN:
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0304-3932
- Language:
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English
- Keywords:
- Pubs id:
-
pubs:965520
- UUID:
-
uuid:0cecf1fd-975f-4b68-8457-6d992f654c02
- Local pid:
-
pubs:965520
- Source identifiers:
-
965520
- Deposit date:
-
2019-01-22
- ARK identifier:
Terms of use
- Copyright holder:
- Elsevier B.V.
- Copyright date:
- 2019
- Rights statement:
- © 2019 Elsevier B.V.
- Notes:
- This is the accepted manuscript version of the article. The final version is available online from Elsevier at https://doi.org/10.1016/j.jmoneco.2019.01.007
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