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by lkrubner
2906 days ago
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If the USA is good for business, why has business formation been in decline for 30 years? Understanding the 30 year Decline in Business Dynamism https://ideas.repec.org/p/red/sed015/1333.html "Recent empirical work has drawn attention to an unmistakable shift in U.S. firm dynamics since the late 1970s. Principally, the entry rate, measured as the share of new employer firms out of all employer firms, declined by nearly 40 percent from 1977 to 2007, even before the impact of the Great Recession. Remarkably, this steady decline occurred relatively uniformly within geographic areas and within relatively narrow industry aggregations. Taking this trend decline or startup deficit as given, Pugsley and Sahin (2014) show that both its direct effect on business formation and its indirect cumulative effect through a shift in the employer age distribution partly explain the emergence of slower employment recoveries with each business cycle." Declining investment since the early 1960s: http://www.smashcompany.com/business/the-decline-of-usa-inve... |
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