Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/285113 
Year of Publication: 
2024
Series/Report no.: 
IWH Discussion Papers No. 19/2023
Version Description: 
This version: March 7, 2024
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
We study changes in business dynamism in Europe after 2000 using novel microaggregated data that we collected for 19 European countries. In all countries, we document a broad-based decline in job reallocation rates that concerns most economic sectors and size classes. This decline is mainly driven by dynamics within sectors, size, and age classes rather than by compositional changes. Large and mature firms experience the strongest decline in job reallocation rates. Simultaneously, the employment shares of young firms decline. Consistent with US evidence, firms' employment has become less responsive to productivity shocks. However, the dispersion of firms' productivity shocks has decreased too. To enhance our understanding of these patterns, we derive and apply a novel firmlevel framework that relates changes in firms' sales, market power, wages, and production technology to firms' responsiveness and job reallocation.
Subjects: 
business dynamism
European cross-country data
job reallocation
market power
productivity
responsiveness of labor demand
technology
JEL: 
D24
D43
J21
J23
J42
L11
L25
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.