New Study Reveals High Business Turnover Boosts Industry Productivity
Recent research using census-type data has uncovered new facts about how firms come and go in competitive markets. New firms face high failure rates initially, but entering the market gives them room to grow. Changes in ownership follow a pattern similar to finding the right job. These findings show that turnover in industries can boost productivity and efficiency. The data suggests that these trends are consistent across countries, with developing countries showing more flexibility in their markets.