Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown
Ron Jarmin () and
Working Papers from U.S. Census Bureau, Center for Economic Studies
A large literature documents declining measures of business dynamism including high-growth young firm activity and job reallocation. A distinct literature describes a slowdown in the pace of aggregate labor productivity growth. We relate these patterns by studying changes in productivity growth from the late 1990s to the mid 2000s using firm-level data. We find that diminished allocative efficiency gains can account for the productivity slowdown in a manner that interacts with the within firm productivity growth distribution. The evidence suggests that the decline in dynamism is reason for concern and sheds light on debates about the causes of slowing productivity growth.
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https://www2.census.gov/ces/wp/2017/CES-WP-17-17.pdf First version, 2017 (application/pdf)
Journal Article: Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown (2017)
Working Paper: Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:17-17
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