The extent of beta- and sigma-convergence of average labor productivity across manufacturing industries in 18 OECD-countries over the period 1972-1992 show large inter-industry differences. One reason for these differences is knowledge and capital barriers preventing catch-up to occur. We find...

This paper documents that a process of industrial restructuring has been transforming the developed economies, where large corporations are accounting for less economic activity and small firms are accounting for a greater share of economic activity. Not all countries, however, are experiencing...

The extent of beta- and sigma-convergence of average labor productivity across manufacturing industries in 18 OECD-countries over the period 1972-1992 show large inter-industry differences. One reason for these differences is knowledge and capital barriers preventing catch-up to occur. We find...

This paper investigates the dynamic relationship between self-employment and unemployment rates. On the one hand, high unemployment rates may lead to start-up activity of self-employed individuals (the "refugee" effect). On the other hand, higher rates of self-employment may indicate increased...

We introduce a new theory of industry evolution. According to our model, the nonmonotonicity in firm numbers found in many young industries is a consequence of the gradual decline in unit costs. Early stages of the industry life cycle, when unit costs and profit margins are high, display...