Economics at your fingertips  

Grown-up business cycles

Benjamin Pugsley () and Aysegul Sahin ()

No 707, Staff Reports from Federal Reserve Bank of New York

Abstract: We document two striking facts about U.S. firm dynamics and interpret their significance for employment dynamics. The first is the dramatic decline in firm entry and the second is the gradual shift of employment toward older firms since 1980. We show that despite these trends, the lifecycle dynamics of firms and their business cycle properties have remained virtually unchanged. Consequently, aging is the delayed effect of accumulating startup deficits. Together, the decline in the employment contribution of startups and the shift of employment toward more mature firms contributed to the emergence of jobless recoveries in the U.S. economy.

Keywords: firm dynamics; employment dynamics; business cycles; entrepreneurship (search for similar items in EconPapers)
JEL-codes: E32 J00 L25 L26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-ent, nep-mac and nep-sbm
Date: 2014-12-01, Revised 2015-09-01
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) Summary (text/html) Full text (application/pdf)

Related works:
Working Paper: Grown-Up Business Cycles (2015) Downloads
Working Paper: Grown-up Business Cycles (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Staff Reports from Federal Reserve Bank of New York Contact information at EDIRC.
Series data maintained by Amy Farber ().

Page updated 2018-01-13
Handle: RePEc:fip:fednsr:707