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  • P-ISSN 2586-2995
  • E-ISSN 2586-4130
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KDI Journal of Economic Policy. Vol. 37, No. 4, November 2015, pp. 55-74

https://doi.org/10.23895/kdijep.2015.37.4.55

× KDI Open Access is a program of fully open access journals to facilitate the widest possible dissemination of high-quality research. All research articles published in KDI JEP are immediately, permanently and freely available online for everyone to read, download and share in terms of the Creative Commons Attribution 4.0 International License.

Job Creation, Destruction, and Regional Employment Growth: Evidence from Korean Establishment-level Data

JANG HEE CHO; HYUN BAE CHUN; YOONSOO LEE; IN SILL YI

Author & Article History

Manuscript received 11 June 2015; revision received 12 June 2015; accepted 29 November 2015.

Abstract

Using the Census on Establishments collected by Statistics Korea, we analyze how the patterns of job creation and destruction differ across counties (si-gun-gu). We measure aggregate employment changes due to establishment startups, expansions, contractions, and shutdowns for each county and quantify the role of such reallocations in explaining variation in employment growth across counties. Overall we find that both rates of net entry and job creation play an important role in explaining differences in net job creation rates across regions. Moreover, counties with high employment growth rates also tend to have high exit and job destruction rates, which suggests that an active process of job reallocation is a key source of regional employment growth.

Keywords

Job Creation, Job Destruction, Entry and Exit, Regional Employment

JEL Code

E24, O47, R11

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