Did US Business Dynamism Recover in the 2010s?
Miguel Casares () and
Hashmat Khan ()
No 21-03, Carleton Economic Papers from Carleton University, Department of Economics
We provide evidence showing that the US business entry rates have been either rising or remained flat over the past decade ending their secular decline observed over previous decades. Although the number of startups relative to incumbents has been increasing, their job-size (intensive margin) has decreased substantially. Controlling for these opposite trends reveals that the size-adjusted entry rates have remained flat after 2010 at historically minimum values. The vigorous business dynamism reflected in actual entry rates, therefore, masks the weakness of employment creation in new businesses. The average number of hirings per new establishment has fallen from around 6 jobs in the 1990s to nearly 3 jobs in recent observations.
Keywords: Business entry rates; Business dynamism; Size-adjusted entry rates; BED; BDS (search for similar items in EconPapers)
JEL-codes: E22 E32 (search for similar items in EconPapers)
Pages: 18 pages
New Economics Papers: this item is included in nep-bec, nep-ent, nep-mac and nep-sbm
References: Add references at CitEc
Citations: Track citations by RSS feed
Published: Carleton Economics Papers
Downloads: (external link)
Journal Article: Did US business dynamism recover in the 2010s? (2022)
Working Paper: Did US Business Dynamism Recover in the 2010s? (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:car:carecp:21-03
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Carleton Economic Papers from Carleton University, Department of Economics C870 Loeb Building, 1125 Colonel By Drive, Ottawa Ontario, K1S 5B6 Canada.
Bibliographic data for series maintained by Sabrina Robineau ( this e-mail address is bad, please contact ).