Technology, job creation and job destruction in Finnish manufacturing

Job creation, destruction and reallocation rates is examined using data on Finnish manufacturing establishments for the period 1987-93, focusing on di fferences in these rates across the technology levels, and on the effects o f the 1990s recession on the rates. The results indicate that the high tech nology sector has higher job creation and destruction rates, and it has res ponded to the recession somewhat differently than other sectors. It is also found that the high and low technology sectors are contributing differentl y to job reallocation: high technology is more important (compared to its e mployment share) in job creation, entry, and gross reallocation, while low technology is more important in job destruction, exit, and net job decrease .