Working Paper Series, FIEF - Trade Union Institute for Economic Research
Jesper Antelius and Lars Lundberg
Competition, Market Structure and Job Turnover
Abstract: Data for rates of job turnover among plants in the Swedish
economy in 1986-97 imply that in a typical year in a representative
industry one out of six jobs disappeared, and a corresponding number of
jobs were created. Job turnover is counter-cyclical, with no trend, and is
higher for skilled jobs, and lower in manufacturing, than for all jobs. The
rate of job turnover seems to be higher in industries with high rates of
innovation and market growth, which may indicate that the volatility of
firm specific demand and supply shocks is higher in such industries.
Moreover, for given shocks, turnover is higher in industries with many
small plants and low return on capital. The results support the hypothesis
that market shares are more stable, and thus reallocation of jobs limited,
in industries where firms have strong market power. Finally, there is less
job turnover in export oriented industries where foreign ownership is
widespread. Firms selling in many markets and/or producing in different
locations may be able to even out the employment effects of shocks specific
to individual markets and/or locations.
Keywords: Job turnover; Market structure; International competitiveness; (follow links to similar papers)
JEL-Codes: F10; J63; (follow links to similar papers)
25 pages, November 6, 2000
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