Gross job flows and the evolution of size in U.K. establishments

Jozef Konings

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

This paper analyzes a relationship between establishment size and gross job creation and destruction in the U.K. during the 1980's. I find that the gross job creation rate is highest in small plants and lowest in large ones. In contrast, the gross job destruction rate is lowest in small plants and highest in large ones. In absolute numbers, however, large plants create, but also destroy most jobs. I test convergence in plant size by computing Markov transition matrices. The advantage of this approach is that it avoids Galton's fallacy of regression towards the mean and that it reflects job creation and destruction between size classes. I find no evidence of convergence, hence no regression towards the mean.

Original languageEnglish
Pages (from-to)213-220
Number of pages8
JournalSmall Business Economics
Volume7
Issue number3
DOIs
Publication statusPublished - Jun 1995
Externally publishedYes

Fingerprint

Job flows
Job destruction
Job creation
Class size
Establishment size
Transition matrix
Plant size

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Gross job flows and the evolution of size in U.K. establishments. / Konings, Jozef.

In: Small Business Economics, Vol. 7, No. 3, 06.1995, p. 213-220.

Research output: Contribution to journalArticle

Konings, Jozef. / Gross job flows and the evolution of size in U.K. establishments. In: Small Business Economics. 1995 ; Vol. 7, No. 3. pp. 213-220.
@article{0e1f90e3563640a9844cfbca3c5c80fc,
title = "Gross job flows and the evolution of size in U.K. establishments",
abstract = "This paper analyzes a relationship between establishment size and gross job creation and destruction in the U.K. during the 1980's. I find that the gross job creation rate is highest in small plants and lowest in large ones. In contrast, the gross job destruction rate is lowest in small plants and highest in large ones. In absolute numbers, however, large plants create, but also destroy most jobs. I test convergence in plant size by computing Markov transition matrices. The advantage of this approach is that it avoids Galton's fallacy of regression towards the mean and that it reflects job creation and destruction between size classes. I find no evidence of convergence, hence no regression towards the mean.",
author = "Jozef Konings",
year = "1995",
month = "6",
doi = "10.1007/BF01135366",
language = "English",
volume = "7",
pages = "213--220",
journal = "Small Business Economics",
issn = "0921-898X",
publisher = "Springer Netherlands",
number = "3",

}

TY - JOUR

T1 - Gross job flows and the evolution of size in U.K. establishments

AU - Konings, Jozef

PY - 1995/6

Y1 - 1995/6

N2 - This paper analyzes a relationship between establishment size and gross job creation and destruction in the U.K. during the 1980's. I find that the gross job creation rate is highest in small plants and lowest in large ones. In contrast, the gross job destruction rate is lowest in small plants and highest in large ones. In absolute numbers, however, large plants create, but also destroy most jobs. I test convergence in plant size by computing Markov transition matrices. The advantage of this approach is that it avoids Galton's fallacy of regression towards the mean and that it reflects job creation and destruction between size classes. I find no evidence of convergence, hence no regression towards the mean.

AB - This paper analyzes a relationship between establishment size and gross job creation and destruction in the U.K. during the 1980's. I find that the gross job creation rate is highest in small plants and lowest in large ones. In contrast, the gross job destruction rate is lowest in small plants and highest in large ones. In absolute numbers, however, large plants create, but also destroy most jobs. I test convergence in plant size by computing Markov transition matrices. The advantage of this approach is that it avoids Galton's fallacy of regression towards the mean and that it reflects job creation and destruction between size classes. I find no evidence of convergence, hence no regression towards the mean.

UR - http://www.scopus.com/inward/record.url?scp=21844511454&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=21844511454&partnerID=8YFLogxK

U2 - 10.1007/BF01135366

DO - 10.1007/BF01135366

M3 - Article

VL - 7

SP - 213

EP - 220

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

IS - 3

ER -