A Selective Survey to the Literature on Job Creation and Destruction

12.11.1999 Työpapereita 163 Petri Böckerman

Introduction

This paper is in three parts. The first section states the definitions and the basic empirical regularities of the microeconometric studies on job creation and destruction. It is highly important to note that these basic facts are almost exclusively based on the studies that use establishment-level data on the (U. S.) manufacturing sector. The second section briefly articulates some main established theories in the literature on job creation and destruction. However, the treatment of available theories on job creation and destruction is not a survey of a vast literature. The main focus of the treatment is in reallocation. The last section concludes.