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Grown-Up Business Cycles

Author

Listed:
  • Benjamin W. Pugsley
  • Ayseg�l Sahin
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.

Suggested Citation

  • Benjamin W. Pugsley & Ayseg�l Sahin, 2015. "Grown-Up Business Cycles," Working Papers 15-33, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:15-33
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    firm dynamics; employment dynamics; business cycles; entrepreneurship;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J00 - Labor and Demographic Economics - - General - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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