Fracking has driven an oil and natural gas boom in the US over the past decade. This column examines the impact these mining activities have had on local and regional economies. US counties enjoy significant economic benefits, including increased wages and new job creation. These effects grow as the geographic radius is extended to include neighbouring areas in the region. The results suggest that the fracking boom provided some insulation for these areas during the Great Recession, and lowered national unemployment by as much as 0.5%.
James Feyrer, Erin Mansur, Bruce Sacerdote, 16 November 2015
Chiara Criscuolo, Peter Gal, Carlo Menon, 26 May 2014
Young firms are known to play a central role in job creation. This column presents the results of a new OECD project on the dynamics of employment (DynEmp) based on an innovative methodology using firm-level data. It confirms that young firms play a central role in creating jobs, and in enhancing growth and innovation. Public policies can help by enabling firms to experiment, and by fostering the reallocation of resources towards the most productive firms. Structural reforms to product, labour, and capital markets, as well as bankruptcy laws that do not overly penalise failure, are particularly relevant.
Manuel Adelino, Song Ma, David Robinson, 12 February 2014
There is a strong link between entrepreneurship and growth – young firms were responsible for almost all net job creation in the US economy over the last 30 years. This column presents new research into the responsiveness of firms of different ages to investment opportunities. Firms aged 0–23 months create about twice the total number of new jobs in response to local income shocks than firms that are more than six years old.
Ejaz Ghani, William Kerr, Stephen O'Connell, 04 December 2011
With millions of young people entering the global labour market each year, the question on their lips as well as policymakers’ on high is whether there will be enough jobs for them. But fewer are asking who actually creates these jobs. This column looks at data from India suggesting that young and small firms play a vital role. It argues that entrepreneurship works; policymakers just need to support it.
Roger Farmer, Dmitry Plotnikov, 05 September 2011
Can government spending help the economy recover from a recession by boosting job creation and lowering unemployment? Or is it a waste of money? This column addresses this question and others using a unique framework. It explains why fiscal policy was effective at ending the Great Depression but it argues that a big fiscal expansion may not be the best solution this time round.
Wendy Carlin, David Soskice, 14 August 2007
Private supply-side reforms in Germany are what caused the recovery – not government labour market and welfare state reforms. Further real wage cuts, generic labour and welfare reforms, or radical changes in corporate governance might not help. Future reform should focus on the functioning of the labour market without undermining the core labour system.
Michael Burda, 23 July 2007
Germany has finally gotten aboard the train of labour market, supply-side oriented reforms initiated by Europe’s success stories -- Netherlands, Denmark, Ireland, and the UK. Italy and France would do well to follow suit