Technology, job creation and job destruction in Finnish manufacturing

Abstract

Job creation, destruction and reallocation rates is examined using data on Finnish manufacturing establishments for the period 1987–93, focusing on differences in these rates across the technology levels, and on the effects of the 1990s recession on the rates. The results indicate that the high technology sector has higher job creation and destruction rates, and it has responded to the recession somewhat differently than other sectors. It is also found that the high and low technology sectors are contributing differently to job reallocation: high technology is more important (compared to its employment share) in job creation, entry, and gross reallocation, while low technology is more important in job destruction, exit, and net job decrease.