Categories:
Business Economics
Labor Market
In every year since 1989, new companies have created more net jobs than the economy as a whole, which means that older companies are, on average, destroying more jobs than they create. In 2009, the latest year for which we have data, new businesses created 2.33 million jobs, while older businesses destroyed, on net, more than 7 million jobs.
Thanks to Phil Izzo for the pointer.
READER COMMENTS
Mercer
Mar 30 2012 at 1:38pm
“Then, when people don’t buy health insurance until they are sick, the price will be quite high ”
What if someone develops a chronic condition, like diabetes, when they are a child? They will already be priced out of the insurance market before adulthood.
The rise of genetic testing makes the current model more untenable. People will get tested when they are young and buy insurance or not based upon the results.
Bob Montgomery
Mar 30 2012 at 3:43pm
Isn’t some of this just selection effects and asymmetries?
A Google or Facebook startup that creates 3000 jobs offsets a lot of flameouts that destroy 5.
On the other hand, for every Best Buy that lays off 15% of it’s workforce or KMart that goes bankrupt there probably are many fewer older companies to offset that by creating 5000 jobs.
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