James Bessen, 22 September 2016

A popular notion is that computer automation leads to major job losses. However, this ignores the dynamic economic responses that involve both changing demand and inter-occupation substitution. Using US data, this column explores the effect of automation on employment growth for detailed occupational categories. Computer-using occupations have had greater job growth to date, while those using few computers suffer greater computer-related losses. The real challenge posed by automation is developing a workforce with the skills to use new technologies.

Ryan Decker, John Haltiwanger, Ron Jarmin, Javier Miranda, 19 March 2016

Recent evidence suggests that transformational entrepreneurial firms – those that introduce major innovations and make substantial contributions to growth – have been in decline. This column uses US micro data to explore the behaviour of high-growth young firms between 1980 and 2010. A decline in young firm activity in the 1980s and 1990s was dominated by young firms in the retail trade sector. In the post-2000 period, in contrast, a sharp decline in high-growth young businesses in key innovative sectors like high tech suggests there has been a decline in transformational entrepreneurs in this sector. 

Ian Dew-Becker, Robert J. Gordon, 15 April 2008

Europe’s jobs outlook has brightened over the past decade. Recent research suggests that about half the rise in job creation is due to labour market reforms, but much of the rest is due to changing social norms concerning female and immigrant labour force participation. But what’s good for European job creation seems to be bad for labour productivity growth – a trade-off that European policymakers must be willing to acknowledge and address.

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