Code for: Changing Dynamism and Productivity: Shocks vs Responsiveness
- Decker, Ryan (Board of Governors of the Federal Reserve System)
- Haltiwanger, John (University of Maryland)
- Jarmin, Ron (United States Department of Commerce. Bureau of the Census)
- Miranda, Javier (United States Department of Commerce. Bureau of the Census)
AbstractThe pace of job reallocation has declined in the U.S. in recent decades. We draw insight from canonical models of business dynamics in which reallocation can decline due to (a) lower dispersion of idiosyncratic shocks faced by businesses, or (b) weaker marginal responsiveness of businesses to shocks. We show that shock dispersion has actually risen, while the responsiveness of business-level employment to productivity has weakened. Moreover, declining responsiveness can account for a significant fraction of the decline in the pace of job reallocation, and we find suggestive evidence this has been a drag on aggregate productivity.
1981-01-01 / 2014-12-31Time Period: Thu Jan 01 00:00:00 EST 1981--Wed Dec 31 00:00:00 EST 2014
Is version of
Decker, Ryan, John Haltiwanger, Ron Jarmin, and Javier Miranda. “Changing Business Dynamism and Productivity: Shocks vs. Responsiveness.” American Economic Review, n.d.
Update Metadata: 2020-11-23 | Issue Number: 1 | Registration Date: 2020-11-23