Over the past decade, a growing body of evidence has accumulated suggesting that the reallocation of factors of production, including labor, plays a major role in driving productivity growth. New firms enter the market and create new jobs, while other unprofitable firms exit the market contributing to job destruction. At the same time, incumbent firms are in a continuous process of adaptation in response to the development of new products and processes, changes in competitive forces, etc.
Market conditions and institutional factors play a major role in shaping the magnitude of job flows and their characteristics. Assessing the role of labor regulations and how they affect the job market is, therefore, of great importance. While labor reallocation is indeed important to promote productivity growth, it is also painful for the affected workers, who face significant search and other adjustment costs.
|Speakers || ||Discussants |
|John Haltiwanger || ||Cai Fang |
|Francis Teal || ||Adriana Kugler |