Maine Job Creation from the Birth or Death of Establishments
June 21, 2010Author: J. Scott Moody
Source: Maine Business InsideOut
What is Maine’s business climate? That is an age-old question that is usually answered with one anecdote or another. Depending on one’s vantage point, Maine’s business climate could be too hot, too cold or just about right. Unfortunately, creating public policy using anecdotes often leads to a “shotgun” approach to legislation where a lot of tiny problems get addressed but no one is ever able to put together a view of the bigger picture. A large part of the problem has been a lack of detailed empirical data on Maine’s businesses. Until now.
Understanding this dynamic process relating to the opening and closing, hereafter “births and deaths,” of establishments is vital to ensuring public policy aids rather than hinders job creation. This study finds that establishment births are the most vital factor in the economy’s ability to create new jobs.
