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Productivity and employment dynamics of US manufacturing plants

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  • Lee, Yoonsoo
  • Mukoyama, Toshihiko

Abstract

This study estimates the plant-level dynamics of productivity and employment in the United States. We use the Annual Survey of Manufactures from the US Census Bureau for the period 1972–1997. Applying the system generalized method of moments estimation developed by Blundell and Bond (1998), we find that productivity and employment processes are both strongly persistent.

Suggested Citation

  • Lee, Yoonsoo & Mukoyama, Toshihiko, 2015. "Productivity and employment dynamics of US manufacturing plants," Economics Letters, Elsevier, vol. 136(C), pages 190-193.
    • Handle: RePEc:eee:ecolet:v:136:y:2015:i:c:p:190-193
    DOI: 10.1016/j.econlet.2015.09.018
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    References listed on IDEAS

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    Cited by:

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    2. Emin Dinlersoz & Henry Hyatt & Hubert Janicki, 2019. "Who Works for Whom? Worker Sorting in a Model of Entrepreneurship with Heterogeneous Labor Markets," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 34, pages 244-266, October.
    3. Lopez-Martin, Bernabe & Perez-Reyna, David, 2021. "Contracts, firm dynamics, and aggregate productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 130(C).
    4. Vincent Sterk & Petr Sedláček & Benjamin Pugsley, 2021. "The Nature of Firm Growth," American Economic Review, American Economic Association, vol. 111(2), pages 547-579, February.
    5. Noh‐Sun Kwark & Eunseong Ma, 2021. "Entrepreneurship And Income Distribution Dynamics: Why Is The Income Share Of Top Income Earners Acyclical Over The Business Cycle?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 62(1), pages 321-356, February.
    6. Hassan Afrouzi & Andres Drenik & Ryan Kim, 2020. "Growing by the Masses - Revisiting the Link between Firm Size and Market Power," CESifo Working Paper Series 8633, CESifo.
    7. Petr Sedláček, 2020. "Creative Destruction and Uncertainty," Journal of the European Economic Association, European Economic Association, vol. 18(4), pages 1814-1843.
    8. Michael L. Polemis & Mike G. Tsionas, 2022. "Endogenous productivity: a new Bayesian perspective," Annals of Operations Research, Springer, vol. 318(1), pages 425-451, November.
    9. Marek Ignaszak & Petr Sedlacek, 2021. "Profitability, Productivity and Growth," Discussion Papers 2115, Centre for Macroeconomics (CFM).
    10. Marta Morazzoni & Andrea Sy, 2021. "Female Entrepreneurship, Financial Frictions and Capital Misallocation in the US," Working Papers 1299, Barcelona School of Economics.
    11. Lee, Yoonsoo & Mukoyama, Toshihiko, 2018. "A model of entry, exit, and plant-level dynamics over the business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 96(C), pages 1-25.
    12. Tomohiro Hirano & Ryo Jinnai & Alexis Akira Toda, 2022. "Leverage, Endogenous Unbalanced Growth, and Asset Price Bubbles," Papers 2211.13100, arXiv.org, revised Feb 2024.
    13. Jonathan J Adams, 2020. "Moderating Macroeconomic Bubbles Under Dispersed Information," Working Papers 001005, University of Florida, Department of Economics.
    14. Godfrey Madigu & Luis A. Gil‐Alana, 2021. "What do productivity indices tell us? A case study of U.S. industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 4946-4978, October.
    15. Adams, Jonathan J., 2023. "Moderating noise-driven macroeconomic fluctuations under dispersed information," Journal of Economic Dynamics and Control, Elsevier, vol. 156(C).
    16. Morazzoni, Marta & Sy, Andrea, 2022. "Female entrepreneurship, financial frictions and capital misallocation in the US," Journal of Monetary Economics, Elsevier, vol. 129(C), pages 93-118.
    17. Woo, Jinhee, 2022. "The cyclicality of entry and exit: The role of imperfect information," Journal of Economic Dynamics and Control, Elsevier, vol. 137(C).

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    More about this item

    Keywords

    Plant-level productivity; Plant-level employment; Dynamic panel estimation;
    All these keywords.

    JEL classification:

    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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