ISSN:
1467-9914
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
This paper measures the relation between job flows and establishment size, applying econometric techniques best suited for analyzing the long-run dynamics of large cross-section. Using a balanced panel from the Mexican manufacturing sector, it shows that, in line with existing evidence, initially small firms create proportionally more jobs than large firms. Since these results suffer from regression toward the mean, the paper applies an alternative technique and does not find any long-run tendency of small establishments converging toward the mean. Furthermore, it shows how cross-sectional dynamics across industries varies, and how it is linked to gross and net flows in each sector. Convergence to the mean is observed in relatively stable industries, with asymmetric dynamic behavior between expanding and declining industries.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/1467-9914.00130
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