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Creative Destruction and Organization Change

Author

Listed:
  • David Thesmar

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Mathias Thoenig

Abstract

Firms' organizational choices are influenced by external conditions such as the instability of the product market. In order to address this issue in a macroeconomic perspective, we embed the firm's choice of organizational structure in a model of growth through creative destruction, which induces endogenous market volatility. We find that an increasing supply of skill or globalization may increase the rate of creative destruction, the skill premium, and the skilled wages, and it may depress the unskilled wages. We use an original data set to test the empirical relevance of our theory.

Suggested Citation

  • David Thesmar & Mathias Thoenig, 2000. "Creative Destruction and Organization Change," Post-Print hal-00538064, HAL.
    • Handle: RePEc:hal:journl:hal-00538064
    as

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    Citations

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    Cited by:

    1. Bloom, Nicholas & Van Reenen, John, 2011. "Human Resource Management and Productivity," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 19, pages 1697-1767, Elsevier.
    2. Caroli, Eve & Greenan, Nathalie & Guellec, Dominique, 2001. "Organizational Change and Skill Accumulation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(2), pages 481-506, June.
    3. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2010. "Recent Advances in the Empirics of Organizational Economics," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 105-137, September.
    4. Ildefe T. Villanueva, 2018. "Utilization of Information Technology of Negros Oriental State University towards Total Quality Management," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 9(3), pages 50-65, September.

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