Accessible Version
Rising Markups and Declining Business Dynamism: Evidence From the Industry Cross Section, Accessible Data
Figure 1. Markups and business dynamism, 1980-2016
| Year | Sales-weighted markup | Cost-weighted markup | Entry employment rate | Excess job reallocation |
|---|---|---|---|---|
| 1980 | 0.98 | 0.99 | 0.90 | 1.01 |
| 1981 | 0.98 | 0.98 | 0.96 | 1.00 |
| 1982 | 1.00 | 1.00 | 0.92 | 1.04 |
| 1983 | 1.02 | 1.01 | 1.06 | 1.09 |
| 1984 | 1.02 | 1.02 | 1.16 | 0.86 |
| 1985 | 1.03 | 1.03 | 1.12 | 0.99 |
| 1986 | 1.07 | 1.05 | 1.09 | 1.02 |
| 1987 | 1.08 | 1.05 | 1.21 | 1.16 |
| 1988 | 1.11 | 1.08 | 1.06 | 1.06 |
| 1989 | 1.11 | 1.08 | 1.01 | 0.98 |
| 1990 | 1.12 | 1.08 | 0.95 | 0.95 |
| 1991 | 1.12 | 1.07 | 0.83 | 1.00 |
| 1992 | 1.13 | 1.08 | 0.83 | 1.06 |
| 1993 | 1.12 | 1.08 | 0.84 | 0.95 |
| 1994 | 1.11 | 1.07 | 0.86 | 0.91 |
| 1995 | 1.12 | 1.08 | 0.87 | 0.85 |
| 1996 | 1.13 | 1.08 | 0.86 | 0.93 |
| 1997 | 1.14 | 1.09 | 0.84 | 1.01 |
| 1998 | 1.17 | 1.10 | 0.80 | 0.91 |
| 1999 | 1.19 | 1.11 | 0.69 | 0.95 |
| 2000 | 1.19 | 1.10 | 0.69 | 0.90 |
| 2001 | 1.15 | 1.07 | 0.66 | 1.02 |
| 2002 | 1.17 | 1.07 | 0.81 | 1.08 |
| 2003 | 1.19 | 1.08 | 0.70 | 1.01 |
| 2004 | 1.18 | 1.07 | 0.75 | 0.92 |
| 2005 | 1.18 | 1.07 | 0.78 | 0.91 |
| 2006 | 1.18 | 1.07 | 0.76 | 0.85 |
| 2007 | 1.18 | 1.07 | 0.68 | 0.99 |
| 2008 | 1.16 | 1.04 | 0.64 | 0.94 |
| 2009 | 1.19 | 1.07 | 0.57 | 0.76 |
| 2010 | 1.20 | 1.08 | 0.61 | 0.79 |
| 2011 | 1.18 | 1.06 | 0.57 | 0.78 |
| 2012 | 1.18 | 1.05 | 0.60 | 0.77 |
| 2013 | 1.19 | 1.06 | 0.56 | 0.76 |
| 2014 | 1.20 | 1.06 | 0.58 | 0.73 |
| 2015 | 1.23 | 1.07 | 0.58 | 0.72 |
| 2016 | 1.30 | 1.11 | 0.57 | 0.72 |
Note: Index is relative to 1980-1984 average by series. Entry rate is employment based.
Source: Business Dynamics Statistics; De Loecker, Eeckhout, & Unger (2020); and Compustat.
Figure 2. Change in entry rates and markups, broad sectors
| sectorname | Entry emp rate (change, ppts) | Sales-weighted markup (change) | Entry emp rate (log diff) | Sales-weighted markup (log diff) |
|---|---|---|---|---|
| Agr | -1.39 | 0.63 | -0.57 | 0.45 |
| Mining | -0.96 | 0.46 | -0.68 | 0.37 |
| Utilities | 0.02 | 0.16 | 0.17 | 0.14 |
| Construct | -1.38 | 0.06 | -0.66 | 0.05 |
| Manuf | -0.22 | 0.33 | -0.43 | 0.24 |
| Wholesale | -0.85 | -0.04 | -0.88 | -0.03 |
| Retail | -0.93 | -0.04 | -0.86 | -0.03 |
| T&W | -0.53 | 0.06 | -0.52 | 0.05 |
| Info | -0.36 | 0.15 | -0.48 | 0.08 |
| Fin & Ins | -0.55 | 0.07 | -0.82 | 0.06 |
| Real estate | -1.96 | -0.07 | -0.76 | -0.03 |
| PST | -1.56 | 0.28 | -0.82 | 0.19 |
| Admin | -1.79 | 0.38 | -1.03 | 0.26 |
| Educ | -0.08 | 0.34 | -0.14 | 0.21 |
| Health | -1.05 | -0.49 | -0.94 | -0.38 |
| AER | -1.50 | -0.24 | -0.70 | -0.17 |
| Accom & food | -1.43 | -0.14 | -0.48 | -0.11 |
| Other Svc | -1.30 | -0.15 | -0.70 | -0.11 |
Note: Difference/log difference, 2012-2016 averave vs. 1980-1984 average. Entry rate is employment based.
Source: Business Dynamics Statistics; De Loecker, Eeckhout, & Unger (2020); and Compustat.
Figure 3. Change in dynamism and markups, broad sectors
| sectorname | Sales-weighted markup (change) | Cost-weighted markup (change) | Entry emp rate (change, ppts) | Reallocation (change, ppts) |
|---|---|---|---|---|
| Agr | 0.63 | 0.50 | -1.39 | -18.37 |
| Mining | 0.46 | 0.27 | -0.96 | -8.78 |
| Utilities | 0.16 | 0.08 | 0.02 | 5.61 |
| Construct | 0.06 | 0.06 | -1.38 | -15.94 |
| Manuf | 0.33 | 0.11 | -0.22 | -3.17 |
| Wholesale | -0.04 | -0.04 | -0.85 | -8.22 |
| Retail | -0.04 | -0.05 | -0.93 | -12.39 |
| T&W | 0.06 | 0.04 | -0.53 | -7.41 |
| Info | 0.15 | 0.03 | -0.36 | -11.60 |
| Fin & Ins | 0.07 | 0.01 | -0.55 | 0.89 |
| Real estate | -0.07 | 0.04 | -1.96 | -13.12 |
| PST | 0.28 | -0.15 | -1.56 | -4.42 |
| Admin | 0.38 | 0.11 | -1.79 | -11.06 |
| Educ | 0.34 | 0.30 | -0.08 | -2.06 |
| Health | -0.49 | -0.47 | -1.05 | -0.65 |
| AER | -0.24 | -0.26 | -1.50 | -15.15 |
| Accom & food | -0.14 | -0.14 | -1.43 | -15.95 |
| Other Svc | -0.15 | -0.17 | -1.30 | -10.65 |
Note: Difference, 2012-2016 average vs. 1980-1984 averave. Entry rate is employment based.
Source: Business Dynamics Statistics; De Loecker, Eeckhout, & Unger (2020); and Compustat.
Figure 4. Change in dynamism and markups, 3-digit industries
| sectorname | Sales-weighted markup (change) | Cost-weighted markup (change) | Entry emp rate (change, ppts) | Reallocation (change, ppts) |
|---|---|---|---|---|
| 211 | 0.7 | 0.4 | -1.8 | -6.3 |
| 212 | 0.4 | 0.3 | -1.2 | -6.4 |
| 213 | 0.2 | 0.2 | -3.6 | -11.5 |
| 221 | 0.2 | 0.1 | 0.0 | 5.6 |
| 236 | 0.1 | 0.1 | -2.4 | -16.3 |
| 237 | 0.1 | 0.1 | -2.6 | -12.9 |
| 238 | 0.0 | 0.0 | -2.8 | -16.2 |
| 311 | 0.0 | 0.0 | -0.5 | -6.3 |
| 312 | 0.6 | 0.5 | 2.0 | -2.8 |
| 313 | 0.2 | 0.1 | -0.1 | 0.5 |
| 314 | 0.1 | 0.1 | -1.6 | -5.1 |
| 315 | 0.9 | 0.7 | 3.1 | 6.0 |
| 316 | 0.5 | 0.4 | 1.0 | -3.2 |
| 321 | 0.0 | 0.0 | -1.1 | -5.0 |
| 322 | 0.1 | 0.1 | -0.2 | -0.7 |
| 323 | 0.0 | -0.1 | -1.4 | -5.2 |
| 324 | 0.0 | 0.0 | -0.3 | -2.5 |
| 325 | 1.2 | 0.5 | 0.0 | 0.6 |
| 326 | 0.1 | 0.1 | -1.0 | -6.9 |
| 327 | 0.1 | 0.1 | -0.4 | -0.8 |
| 331 | 0.0 | 0.0 | -0.1 | 0.2 |
| 332 | 0.0 | 0.0 | -0.7 | -4.5 |
| 333 | 0.0 | 0.0 | -0.4 | -4.7 |
| 334 | 0.3 | 0.2 | -0.2 | -4.3 |
| 335 | 0.0 | 0.0 | 0.0 | -2.2 |
| 336 | 0.0 | 0.0 | 0.0 | -2.1 |
| 337 | 0.1 | 0.1 | -1.4 | -3.1 |
| 339 | 1.0 | 0.7 | -0.7 | -6.4 |
| 423 | 0.0 | 0.0 | -1.9 | -8.2 |
| 424 | -0.1 | -0.1 | -1.5 | -8.8 |
| 425 | 0.4 | 0.5 | -0.8 | -1.1 |
| 441 | -0.1 | -0.1 | -1.7 | -8.9 |
| 442 | 0.0 | 0.0 | -3.1 | -11.3 |
| 443 | -0.6 | -0.6 | -3.6 | -16.0 |
| 444 | 0.1 | 0.1 | -2.4 | -15.7 |
| 445 | 0.0 | 0.0 | -1.8 | -12.8 |
| 446 | 0.0 | 0.0 | -1.9 | -7.5 |
| 447 | -0.1 | -0.1 | -2.7 | -16.0 |
| 448 | 0.2 | 0.2 | -2.3 | -12.2 |
| 451 | 0.1 | 0.1 | -3.6 | -18.1 |
| 452 | 0.0 | 0.0 | -0.3 | -9.3 |
| 453 | -0.3 | -0.2 | -4.4 | -15.1 |
| 454 | -0.2 | -0.1 | 0.5 | -3.9 |
| 481 | 0.0 | 0.0 | -0.4 | 2.2 |
| 483 | 0.2 | 0.2 | -0.8 | -16.2 |
| 484 | -0.1 | -0.1 | -0.9 | -5.6 |
| 486 | 0.1 | 0.0 | -0.1 | 9.2 |
| 488 | 0.0 | 0.0 | -1.9 | -12.1 |
| 492 | -0.1 | -0.1 | -2.4 | -9.2 |
| 511 | 1.4 | 0.8 | -0.9 | 4.1 |
| 512 | -0.1 | -0.1 | -2.2 | -20.6 |
| 515 | 0.3 | 0.3 | -3.3 | -0.1 |
| 517 | 0.0 | 0.2 | -0.1 | -25.5 |
| 518 | 0.5 | 0.2 | -1.3 | -4.9 |
| 519 | 0.7 | -0.5 | -0.8 | 4.2 |
| 522 | 0.9 | 0.4 | -0.3 | 5.5 |
| 523 | 0.3 | 0.3 | -3.7 | -4.5 |
| 524 | -0.1 | -0.1 | -1.7 | -4.5 |
| 531 | 0.7 | 0.4 | -3.7 | -13.9 |
| 532 | -0.4 | -0.3 | -4.3 | -9.1 |
| 541 | 0.3 | -0.2 | -3.1 | -4.4 |
| 561 | 0.5 | 0.2 | -3.7 | -11.7 |
| 562 | -0.2 | -0.2 | -1.8 | -4.2 |
| 611 | 0.3 | 0.3 | -0.2 | -2.1 |
| 621 | -0.5 | -0.5 | -3.6 | -3.9 |
| 622 | -0.7 | -0.7 | -2.2 | -0.2 |
| 623 | -0.2 | -0.2 | -1.3 | -3.3 |
| 624 | 0.0 | 0.0 | -1.8 | -10.2 |
| 711 | -0.9 | -0.6 | -5.7 | -23.3 |
| 713 | -0.1 | -0.2 | -2.1 | -11.5 |
| 721 | -0.2 | -0.2 | -2.5 | -13.3 |
| 722 | -0.2 | -0.2 | -3.0 | -16.7 |
| 811 | -0.4 | -0.4 | -4.1 | -13.6 |
| 812 | -0.1 | -0.2 | -1.0 | -7.1 |
Note: Change, 2012-2016 average vs. 1980-1984 average.
Source: Business Dynamics Statistics; De Loecker, Eeckhout, & Unger (2020); and Compustat.
Last Update:
March 08, 2024