Entry, Exit, and Labor Productivity in U. K. Retailing

Jonathan Haskel and Raffaella Sadun

in Producer Dynamics

Published by University of Chicago Press

Published in print March 2009 | ISBN: 9780226172569
Published online February 2013 | e-ISBN: 9780226172576 | DOI:
Entry, Exit, and Labor Productivity in U. K. Retailing

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This chapter reviews the producer dynamics and labor productivity growth in U.K. retailing. The data indicate that producer turnover in U.K. retailing improves productivity by replacing lower productivity exiting firms with higher productivity entering firms. In 2003, there were 285,291 stores in U.K. retailing and 196,286 firms/chains. Entry/exit/one-year/stayers are fairly stable fractions of all stores, being about 11 percent, 11 percent, 5 percent, and 63 percent. Entry and exit rates are lowest in “Pharmaceuticals” and highest in “Not in Stores.” The variation in labor productivity across retailers is somewhat larger than in the U.S. If anything, the contribution of entry and exit to productivity growth is somewhat smaller than in the U.S. There was a change in planning regulations in 1996 that greatly stopped retailers developing out-of-town shops.

Keywords: producer dynamics; labor productivity; U.K. retailing; producer turnover; exiting firms; entering firms; retailers

Chapter.  13470 words.  Illustrated.

Subjects: Microeconomics

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