Author Description

It also identifies the sources of these fading and renewal rates-that is, the degree to which jobs were lost through firm deaths, plant closures and the downsizing of incumbent plants and gained through the establishment of new firms, plant births by incumbent firms and the expansion of employment within incumbent plants. [...] They measure the extent to which the growth and decline of incumbent plants combined with the entry and exit of new ones lead to the complete turnover jobs with the economy. [...] In the case of incumbent firms, the decision to open a new plant is likely the result of one of the following three factors. [...] This is the less dramatic of the two channels and might be thought of as the result of incremental changes within plants (e.g., the addition of a new shift). [...] The first is to allocate all of the specialization effect to the region effect, since we cannot reject the null hypothesis that d = 0. The second option is to treat the point estimate of d as an upper bound of the influence of structure on renewal.