Entry, market turbulence and industry employment growth
2009 (English)In: Empirica, ISSN 0340-8744, E-ISSN 1573-6911, Vol. 36, no 3, 293-308 p.Article in journal (Refereed) Published
This paper investigates the relationship between industrial dynamics in terms of firm entry, market turbulence and employment growth. Do entry of firms, the composition of industry dynamics (net entry) and market turbulence (entry and exit) influence industrial employment growth? This paper provides an empirical investigation, using unique data for 42 disaggregated Swedish industrial sectors during the period 1997-2001. It is hypothesised that the importance of entering firms, net entry and market turbulence may differ significantly across industries. A quantile regression method is used in order to detect industrial differences in the response to industrial employment growth. The empirical evidence shows that, on the one hand, firm entry and market turbulence have a positive effect on employment for fast growing industries and that the effect is larger for high growth industries. On the other hand, the composition of industry dynamics in terms of net entry rates has a more dispersed effect across all industries, even though the effect of net entry is larger for high growth industries.
Place, publisher, year, edition, pages
Springer Science+Business Media B.V., 2009. Vol. 36, no 3, 293-308 p.
Employment growth, Entry, Market turbulence, Quantile regression, empirical analysis, employment generation, hypothesis testing, industrial development, industrial structure, market conditions, regression analysis, Eurasia, Europe, Northern Europe, Scandinavia, Sweden
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-62517DOI: 10.1007/s10663-008-9086-zScopusID: 2-s2.0-67849108194OAI: oai:DiVA.org:kth-62517DiVA: diva2:480519
QC 201201242012-01-192012-01-192016-07-21Bibliographically approved