Total factor productivity growth is positively related to the worker inflow rate and negatively related to the worker outflow rate in Finnish manufacturing. The churning rate, which measures separations that lead to replacement hiring, speeds up productivity growth.

Job creation, destruction and reallocation rates is examined using data on Finnish manufacturing establishments for the period 1987-93, focusing on differences in these rates across the technology levels, and on the effects of the 1990s recession on the rates. The results indicate that the high...