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Project Citation: 

Dent, Robert C., Karahan, Fatih, Pugsley, Benjamin, and Sahin, Aysegül. Replication data for: The Role of Startups in Structural Transformation. Nashville, TN: American Economic Association [publisher], 2016. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116311V1

Project Description

Summary:  View help for Summary The U.S. economy has been going through a striking structural transformation--the secular reallocation of employment across sectors--over the past several decades. We propose a decomposition framework to assess the contributions of various margins of firm dynamics to this shift. Using firm-level data, we find that at least 50 percent of the adjustment has been taking place along the entry margin, due to sectors receiving different shares of startup employment than their employment shares. The rest is mostly due to life cycle differences across sectors. Declining overall entry has a small but growing effect of dampening structural transformation.

Scope of Project

JEL Classification:  View help for JEL Classification
      D22 Firm Behavior: Empirical Analysis
      D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
      J23 Labor Demand
      L26 Entrepreneurship
      M13 New Firms; Startups


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