Browsing by Autor "John Haltiwanger"

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Job Creation in Colombia Versus the USA: ‘Up‐or‐out Dynamics’ Meet ‘The Life Cycle of Plants’
(Wiley, 2022) Marcela Eslava; John Haltiwanger; Álvaro Pinzón
One of the most striking contrasts between the anatomies of the business sectors in higher‐ versus lower‐income economies is the overwhelming dominance of very small production units in the latter. Contrasting manufacturing sector data for Colombia and the USA, we show that weaker ‘up‐or‐out’ dynamics are behind this pattern and behind weaker average lifecycle growth. Dampened growth dynamics, not only in terms of upward mobility but also for exit and downward mobility, characterize both micro‐establishments and young establishments in Colombia relative to their US counterparts. These patterns lead to a more dominant role of small older businesses in accounting for employment. Since dynamic selection among startups is a crucial driver of productivity growth in the USA, our findings point to a shortage of high‐growth entrepreneurship and a relative high likelihood of long‐run survival for small, likely unproductive plants, as two key elements at the heart of the development problem. We also show that analysis of establishment lifecycle dynamics based solely on cross‐sectional data substantially underestimates lifecycle growth.
The Effect of Structural Reforms on Productivity and Profitability Enhancing Reallocation: Evidence from Colombia
(2004) Marcela Eslava; John Haltiwanger; Adriana D. Kugler; Maurice Kügler
In the U.S., some sectoral evidence suggests that growth is driven mainly by productivity enhancing reallocation. In countries with greater barriers to entry and imperfect competition, the reallocation process may be inefficient. Therefore, for developing countries, an open question is whether reallocation is productivity enhancing. Using a unique plant-level longitudinal dataset for Colombia for the period 1982-1998, we examine the interaction between market allocation, productivity and profitability. Given the important trade, labor and financial market oriented reforms in Colombia in 1990, we explore whether and how the contribution of reallocation changed. Our data include plant-level quantities and prices. Using plant prices, we propose a sequential methodology to estimate productivity and demand shocks. First, with plant-level physical output data, we estimate total factor productivity (TFP) using downstream demand to instrument for inputs. Then, with plant-level price data, we estimate demand shocks and mark-ups in the inverse-demand equation, using TFP to instrument for output. We characterize the evolution of TFP and demand shock distributions. Market reforms are associated with rising overall productivity that is driven by reallocation away from low-and towards high-productivity businesses; and, the allocation of activity across businesses is less driven by demand factors.
The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges
(European Organization for Nuclear Research, 2022) Marcela Eslava; John Haltiwanger; Nicolás Urdaneta
This material includes the replication material for "The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges" by Marcela Eslava, John Haltiwanger and Nicolas Urdaneta. Included are software, public domain databases and a readme file describing data, software and instructions for obtaining access to the confidential micro data at DANE (Columbian National Statistical Agency).
The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges
(European Organization for Nuclear Research, 2022) Marcela Eslava; John Haltiwanger; Nicolás Urdaneta
This material includes the replication material for ""The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges" by Marcela Eslava, John Haltiwanger and Nicolas Urdaneta. Included are software, public domain databases and a readme file describing data, software and instructions for obtaining access to the confidential micro data at DANE (Columbian National Statistical Agency).