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Distribution channels of the American book industry: a play of digital technology.

I. Introduction

The classical economist, Alfred Marshall wrote that, "... the booksellers get too large a share of the price of those books which appeal to relatively small audiences ... Authors work: publishers exercise judgment and take risks. But I cannot discover what booksellers do for the extension of knowledge." (1) Marshall would not be surprised at the rapid changes now taking place in the field of book distribution. He might have reasoned that the advent of new technology was wanting in order for booksellers to discover their proper place in the industry. He would have lauded the market forces that brought new entrants such as Amazon, Barnes and Nobles, and Book-a-Million into competition on the internet. The shifting structure of the American Book Industry, which appears as quicksand, might not have alarmed Marshall as "the forces of demand and supply have free play" when they are subject to displacement. (2) Marshall would have witnessed that booksellers mediate the "blade of a pair of scissors" operating under market forces, and we eagerly await for the circumstance that like two balls "against one another in a bowl" they would come to rest as under the force of gravity. (3)

II. Today's Industry

Dominant themes in the changing structure-conduct-performance paradigm are now visible at every turn and twist of the book industry. Libraries are now heavily dependent on online sources of journals, databases, and books. The traditional book

store is now in cyber space. Researchers now search databases and download texts from their home rather than having to visit the library. Booksellers have developed technologies that bring discounted books and even best-sellers to avid readers. Amazon brought out the Kindle E-reader, Apple followed with the iPad, iPod Touch, iPhone, and iBookstore, and, in 2010, Barnes and Nobles came out with the Nook. Booksellers have largely purged their inventory system through the new method of printing on demand. Institutions now make working papers available at their web-site, and one can preview, publish, or download many books easily and for free on the internet. Indeed, digital technology has brought a bountiful harvest to readers not necessarily at the expense of booksellers--thus a win-win situation.

The point of view of supply shock that accompanied digital technology is best characterized by any hypothesis that tries to explain the current state of every aspect of the book industry. The economists' take on supply shock is that it unsettles the industry, but it is on its way to a General Purpose Technologies level often discussed in the endogenous growth literature. (4) Technology must address many niches in demand. Some niches will be filled by old technology, while others will be inadequately filled, and, as the technology becomes general purpose in nature, new demand will arise. (5) As production processes accommodate newer technology, book distribution responds in a correspondingly newer way that is no longer akin to concerns about super stores, warehouses, shelf spaces, and printed books, but directed towards virtual space, Print on Demand (POD), and e-book technologies. Companies have a large Research & Development budget to keep this supply shock going. Amazon reports R&D expenditures in "seller platforms, web services, digital initiatives, and expansion of new and existing product categories, as well as in technology infrastructure to enhance the customer experience, improve ... process efficiencies and support ... infrastructure web services." (6)

An example of the new R&D competition among sellers is present in attempts of sellers to block entry by their e-book reader. At first, the joint supply of E-books and E-readers created a complementary relation in supply. One's E-book can only be downloaded on ones E-reader. But later, with the advent of Google E-books, which shattered that complement model, allowed books to be read from almost all electronic devices through its digital cloud technology. Sellers' competition became highly differentiated as they tried to improve the quality of their E-readers. The figure below shows how that technological competition translated into price competition. It locates prices as varying between home and abroad, and by grey vs. color technology.

Technological change has cast a loaded dice against the traditional sources of economies of scale in the industry. In the traditional book industry, the high cost of typesetting was spread over the number of runs--absent in small batches and present in large batches. As far back as 1992, Joseph Dionne, chairman and CEO of McGrawHill wrote that with the advent of digital technology "... a 2,000-book run can be followed by a 50-book run, which can then be followed by 450-book run, without stopping."7 By 2000, the technology was well advanced, and the marginal cost of producing an additional book was pushed towards zero. Examining the ratio of Average to Marginal cost [AC(q)/MC(q)] hypothesis for recent years for which data is available; we notice that AC(q) was consistently falling for operating, personnel, material, and service costs. Conversely, MC(q) identifies that a Stage I phase of production is associated with increasing marginal returns.

Ordinarily, dynamic changes that are present in the book industry would require us to examine competition and cooperation in light of concentration, pricing policies, mergers, unit cost structure, and profit levels. One new phenomenon is that large chains can now easily cooperate with small sellers to expand their market share by allowing many independent sellers to access their websites. To do a breadth and depth study of the evolving market structure of the industry, one should initiate the study with a snapshot of the business at a point in time. The industry's profile for 2002 places the total number of firms in the industry at 3,242. Although 2002 is not so long ago, that year is in the milieu of dramatic changes for book sellers. For instance, as of 2008, Barnes and Noble had 778 bookstores, a decline from 1,786, and Borders Group, now extinct, had 1,018 bookstores, a decline from 2,140 in 1996. Some other reference points for 2002 reveal that the value of books produced was $25 billion, new titles or editions 144,500, and employment totaled 83,400 jobs.

III. Analyses and Findings

In order to penetrate the depth of changes in the book industry, we investigate two long-standing and renowned hypotheses in the industrial organization literature. The idea is not to superimpose these findings on the modern book industry, but to see if the true structural paradigm has shifted, and by what steps it has varied from the traditional looking-glass view. The hypotheses are due to the works of Joe Bain and George Stigler who were largely responsible for laying the foundation of modern industrial economics that has come a long way from Alfred Marshall's views on the subject. Of course, those authors were unaware of the nature of the new shape of the industry following the design of new high technology, but we may presume that the tools that were intended to be used were emblematic of sound economic procedures. The two hypotheses we investigate are:

Hypothesis I, (Bain): Concentration encourages cooperation among firms, creating potential for higher profit levels. Implication of Bain's Hypothesis: Variation in concentration ratios explains variation in sales.

Hypothesis II, (Stigler): Small firms recognize and reward workers' ability more than large firms. Corollary: If small firms' profits are adjusted for these wage advantages, then there will be no correlation between profits and concentration.

Bain's hypothesis is permeated with the problem of concentration. While Stigler's hypothesis represents an inversion, primarily as a way to explain competition. We have merged the two hypotheses into one system of equations. Such a model can be addressed with a specification that links concentration ratio to profits or sales. In turn, concentration can be made dependent on mergers and price-cost margins, the two best variables among a priori explanatory variables one can find in the literature. We can now write a system of regression equations of the following design for the purpose of investigating the above hypotheses, where the variables are sales, concentration, mergers and price-cost margin, and the constants to be estimated are a, b, c, d and e.

log(Sales) = a + b log([Concentration.sub.C4]) Eq.1

log([Concentration.sub.c4]) = c + d log(Mergers) + e log (p - c/p) Eq.2

We estimated the system of equations recursively, making corrections for the seemingly unrelated residuals in the two equations. Sales data is more readily available and surrogates are used for profits. The first specification therefore, makes sales data from the Book Industry Sales Trend (BISG) dependent on concentration data from the Census. The second specification we make is that the concentration ratios should be dependent on some barriers of entry variables. Stigler has pointed out that "there are no large American companies that have not grown somewhat by merger." (8) In explaining concentration, we also include the price-cost margin variable, because as Stigler said, "... firm size is still governed by economies of scale (height and slope of cost curves) and demand." (9)

We estimated the recursive system twice to reflect the definitions of the price-cost margin variable in Eq.2. At one time we used the estimate from an earlier study where we estimated the elasticity of demand for nine book categories, from which we computed the market power based on the Lemer index. The second time we estimated the system using a definition of price-cost margins to reflect concerns that small firms tend to pay their employees or themselves a high salary, which translated to a lower profit rate. The second measure of the price-cost margin is made on data gathered on the prices for hardcovers only, for the expression (Price-Payroll costs)/Price. The same cost price data is also available for material costs, which we collected as an alternative to the wage-cost hypothesis. The results are in Table 1 below:

Table 1 shows that the estimates are significant except for the payroll price-cost margin. The responsiveness of sales to the four firms' concentration ratio (CR4) for just the Bain hypothesis (Eq.1, Eq. 1A, and Eq1B) ranges from 2.48 to 2.78, which is substantial. One implication for Bain's hypothesis is that by varying the concentration, the payoff in terms of sales revenue is at a higher level. However, this concentration level increase is supported by the second equation that regresses concentration ratios on merger and market power indices.

Equation 2, 2A and 2B in Table 1 show significant responses to the number of mergers. The responses vary from 0.18 to 1.1, and are all significant. For Eq.2, a measure of market power using the Lemer index and total costs indicate that the higher the market power the greater the concentration, and by recursion, the higher the sales revenue is. An attempt to split the cost data into material and payroll cost is not progressive. First, data is only available to compute those margins only for hardcover prices. Second, the sample size is greatly reduced. This attempt turned out to be unsatisfactory for Stigler's hypothesis that small firms recognize and reward ability better than large firms. Our main findings can be abstracted for Table 1 and written in equation form as follows:

log (Sales) = -5.68 + 2.481og([Concentration.sub.c4])

log([Concentration.sub.c4]) = -22.13 + 1.1 log (Mergers) -18.631og (p - c/p)

For those who wonder whether the story can be told without statistical hypotheses, we present an alternative view of the above hypotheses by looking at the actual distribution of the industry data. Table 2 below shows that the four firm concentration has been increasing steadily in the latter years, correlating well with the number of mergers that were taking place.

Table 3 indicates that that the U.S. book industry has been contracting in size since 1992, when measured by the number of establishments, from 12,887 in 1992, to 10,860 in 2002. This decline is despite of the fact that establishments with categories 15-19, 20-49, 50-99 and 100+ categories, were expanding. On average, the losses of establishments with fewer employees are still more than the gain in establishments with larger numbers of employees. This can be best explained by the economies of scale within the retail book industry. This makes sense due to the higher possible gross margin when a wider range of selection is available within the establishment. If establishments are in fact expanding, their selection range, observing a trend in higher concentration of establishments with more employees makes sense.

When subcategories are observed in operated establishments, there is a slight trend of the industry to move from general stores to college and specialty stores. As Table 4 below shows, the general store category still comprises the majority of establishments. The only subcategory that is growing in the actual number of establishments is college bookstores. The number of specialty stores declined slightly and the number of general bookstores declined to 5,526 in 2002 from 6,778 in 1997. This could be due to a possible higher profit margin in the college market, or possibly a rise in the number of colleges, especially in the two year trade school, and online degree program categories.

The growth in College bookstores, decline in General bookstores, and a slight decline in Specialty stores marks an interesting development. There is a trend for General and Specialty stores to shift the concentration of employees from smaller establishments to larger ones. Within the College stores, there is little change in realignment in the size of the establishments. For the General and Specialty bookstores, the loss in sales by the smaller class sizes is exceeded by the gain in sales in the largest class sizes. For the College bookstores, all classes gain sales with the exception of stores which engage one employee.

Table 5 shows that the growth in sales originates from larger firms, whose increase in sales offsets the decline in sales from smaller firms. The '1,000 employees or more' category with eight firms, accounted for 70% of all sales from firms operating in 2002. Several of the classes with fewer than 1,000 employees have experienced declines in the number of firms and sales. The conclusion that we derive is that the industry is undergoing a marked transformation due to sharp technological changes pervading the Industry.

IV. Discussion

The retail book industry as a whole, when measured by number of firms, has been declining from 1992 to 2002, exhibiting great similarity with the declining pattern expressed by the brick-and-mortar aspect of the industry. When the size of the firm is determined by the quantity of employees, a decrease, or approximately no change, has been observed in every category from 1992 to 2002, with the exception of 100-249 employees, and, to a lesser degree, the 1000 employee and greater category. This leads to the conclusion that the number of large size firms (250 employees and larger) are having trouble growing, possibly due to large barriers to entry and tough competition.

When subcategory data is used, all three subdivisions of the book industry show a decline of firms. In the College stores group, firms are declining, but establishments are rising. This signifies that the concentration of college book stores is rising. Fewer firms have more establishments. The concentration of the industry within the three subdivisions from 1997 to 2002 is constant. There is no trend for any subgroup to get larger or smaller. In 2002, General stores made up 58% of the firm size. General stores also accounted for about the same percent of establishments. General stores have a firm-to-establishment ratio of about 1:1.6. This suggests low concentration of many firms with a few stores each. Specialty stores in 2002 had about the same concentration ratio of about 1.5 Specialty establishments for every Specialty firm. The College group, however, is only 7% of firms, but accounts for 18% of all establishments. The ratio of establishments to firms in this group is nearly 1:5. This suggests relatively high concentration of a few firms with many establishments.

The distribution of employees in firms is very similar between General stores and Specialty stores, with no distinct trend toward becoming more concentrated in lower size firms or larger size firms over time. The overwhelming majority of firms in these two categories are made up of smaller firms, consisting of no more than 19 employees. College stores do show a trend from 1997 to 2002 to become more concentrated in larger size firms. Also, college stores are concentrated to a lesser degree in smaller size firms, however; small firms still make up the majority of firms.

When sales data is broken down into subcategories, analyzed by employee size of firms and adjusted for inflation, for comparable data, there is a downward trend in every size category. Sales are growing in the industry, but detailed data is not made available for larger groups as mentioned above. Since all observable data for sales by employment size of firms in each subcategory are falling, it is reasonable to assume the sales growth observed in the industry and all subcategories is coming from large firms, whose increase in sales offsets the decline in sales from smaller firms.

The 1000+ category in 2002 which has only 8 firms, accounted for $10,680,403,000 in sales during 2002, thus accounting for over 70% of all sales from firms operating for the year. Large firms (250 employees and up) account for less than 0.5% of all firms, but drive all of the sales growth in the industry.

Despite the dominance in sales growth by the largest firms (defined by employees) the firms with the largest numbers of establishments are very low. Large firms (50 or more establishments) have not grown from 1992 to 2002. This could be due to the high barriers of entrance for very large firms. It is much easier for a single unit firm or a multiunit firm with few establishments to enter the market as opposed to a very large firm with many establishments and employees. While the single unit firms clearly dominate the industry, accounting for slightly over 92% of all firms, both single unit and multiunit firms have been on the decline. As a percentage of the entire industry, single units are actually increasing their market share due to a declining rate, lower than that of multiunit firms. Since 1992, single unit firms have declined by 28.36% while multiunit firms have declined by just over 35%. Since 1992, every category of multiunit firms (up to 24 establishments) has fallen while the larger multiunit firms have remained stable. Large multiunit firms (25 or more establishments) experienced slight growth from 1992 to 1997, but in 2002, all large multiunit firm categories contracted back to previous levels.

For all multiunit firms, sales have decreased for smaller firms and have risen dramatically in the 100+ establishment category. Multiunit firms dominate sales at almost 83% of all sales in 2002, up from 69.25% in 1992. The largest size firms account for the overwhelming majority of sales for the entire industry. However, there were only 11 firms with over 50 establishments in 2002.

At the subcategory levels, the sales trend is similar for Specialty and General stores as it is for total firms. Single unit firms are losing sales and multiunit sales are rising. For College stores, the trend is different. Single unit and multi unit firms are increasing sales. When size of multiunit firms are observed, the trend is for all three subcategories to lose sales in smaller firms, leading to the conclusion that sales must be rising in the larger firms. The only noticeable exception is the 5 to 9 establishment category of college bookstores.

V. Conclusions

Traditional industrial organizations highlight many important distribution characteristics for this case study. Merger and market power do influence concentration, which in turn influences sales revenue. The distribution channels for books have evolved from bookstores, to super stores, to the Internet. Larger book stores seem to have a dominant position in these activities through mergers and incorporations, yet, this does not show up as high concentration for the industry. On average for the industry, the concentration seems to be held in check from cooperation with smaller independent firms for the purpose of reaching customers in the suburbs or as independent suppliers on the Internet.

The U.S. retail book industry as a whole has been contracting since 1992. Total firms have been declining and the greatest contraction is seen in small employment categories (up to 19 employees). Mid size firms (20 to 99 employees) have been stable. Large size firms (250 to 999 employees) have had a slight contraction and the 1,000+ size firms have seen a slight increase. Despite the trend for smaller firms to disappear, either exiting the market or becoming larger firms, small firms still make up the overwhelming majority for all firms. This is true for each of the three subcategories, General, Specialty and College firms. The subcategory concentration for firms in 2002 is: General 58%, Specialty 35% and College 7%. This was almost exactly the subcategory mix of 1997. Sales in the subcategories have been mixed. General stores sales are up 4%, Specialty stores are down 1.5% and College stores sales are up about 30%. Almost the entire sales growth seen in the industry is from College stores. Sales of specific sizes have a definite trend in subcategories, smaller and midsize firms are losing sales and larger firms are gaining sales. This is the trend of establishments as well, larger establishments are gaining sales and smaller establishments are losing sales. Establishments have a distinct trend to get larger, unlike firm size. It appears that College book stores are experiencing the best results; gamering higher sales and more establishments. Usually when a size category is contracting, sales also contract and the opposite is also true. The industry is highly concentrated with a mixture of small size firms, small establishments and single unit firms. However, the bulk of sales are concentrated within the largest firms and establishments.

References 2007. 2007 Annual Report of Amazon .com Inc. Retrieved from http://phx.corporate-ir .net/phoenix.zhtml?c=97664&p=irol-reportsannual

Dennis, Everette E., Craig L. LaMay, and Edward C. Pease, 1997. Publishing Books. New Brunswick, NJ: Transaction Publishers.

Gylafason, Thorvaldur, 2003. Principles of Economic Growth; New York: Oxford University Press.

Helpman, Elhanan, 1998. General Purpose Technologies and Economic Growth, edited. Cambridge, MA: MIT Press.

Marshall, Alfred, 1996. The Correspondence of Alfred Marshall: 1903-1924, 1996, Vol. 3, Edited by John K. Whitaker. New York: Cambridge University Press.

Marshall, Alfred, 1982 [1890]. Principles of Economics, Eighth Edition. London: Macmillan Press.

Stigler, George J., 1968. The Organization of Industry. Chicago, IL: University of Chicago Press.

Michael Szenberg, Distinguished Professor of Economics and Business, Touro College, 1602 Ave. J, Brooklyn, NY 11230. Email: Phone: (718) 252-7800 x243

Lall Ramrattan, University of California at Berkeley Extension, 1995 University Avenue, Berkeley, CA 94704. Email:

This paper is derived from Professor Szenberg's John R. Commons Award Lecture given at the American Economic Association's annual conference in San Diego, CA, January 2013.


(1.) Marshall 1996, pp. 168-169.

(2.) Marshall 1890, p. 284.

(3.) Ibid., 1890, pp. 674-675.

(4.) Helpman 1998; Gylfason, 2003.

(5.) Helpman 1998, p. 33.

(6.) Annual Report 2007, p. 23.

(7.) Dennis et al., ed., 1997, p. 25.

(8.) Stigler 1968, p. 95.

(9.) Ibid., p. 69.

Sales on Concentration--SUR System Estimates: 1963 to 2007

                  Eq. 1             Eq. 2             Eq. 1A
                  Bain              Bain-Lemer        Bain 2

Constant          -5.68             -22.13            -5.96
                  (1.92) *          (15.9) ***        (2.02) **
CR4                2.48                                2.57
                  (2.59) ***                          (2.69) ***
Mergers                               1.1
                                    (22.14) ***
(P-C)/P                              18.63
(Lemer)                             (17.30) ***
[R.sup.2]          0.43               0.98             0.42
N. of Obs.         9                4                  9

                  Eq.2A             El. IB            Eq. 2B.
                  Bain-             Bain 3            Bain-
                  Material                            Wage Cost

Constant                            -6.64              2.45
                   (4.04) ***       (2.29) ***        (5.39) ***
CR4                                  2.78
                                    (2.96) ***
Mergers             0.18                               0.23
                   (2.48) ***                         (2.17) **
P-C/P             -40.9                                1.78
(Stigler)          (2.71) ***                         (0.56)
[R.sup.2]           0.88             0.42              0.64
N. of Obs.          5                9                 5

*** = 99 percent level; ** = 95 percent level; and
* = 90 percent level of confidence.

Distribution Aspects of Book Publishing Number of
Establishments and Concentration Ratios

        Number       Value of
        of Firms     Shipment
Years              (in millions)

1947       635          463,900
1954       804          655,200
1958       883        1,000,900
1963       936        1,534,600
1967       963        2,060,200
1972     1,120        2,856,900
1977     1.650        4,793,900
1982     2,007        7,740,000
1987     2,182           12,619
1992     2,504       16,753,100
1997     2,541       22,977,000
2002     3,242

        Concentration Ratios
Years    C4s     C8    C20    C50   of Megers

1947      18     29     48     0        0
1954      21     32     51     0        0
1958      16     29     48    69        0
1963      20     33     56    76       12
1967      20     32     57    77       23
1972      19     31     56    77        8
1977      17     30     57    74       22
1982      17     30     56    75        9
1987      24     38     62    78       26
1992      23     38     62    77       53
1997                                   58
2002    40.7   55.2   72.7    81       84

Source: U.S. Bureau of Census, "2006 Service Annual
Survey Informational Sector Services."

Number of Employees by Size Distribution
of Establishments

Size of establishment      1992      1997      2002

All establishments       12,887    12,363    10,860
Operated entire year     11,492    10,822     9,623
  None                      316        28         2
  1                       1,335     1,056       863
  2                       1,243     1,040       862
  3 or 4                  2,092     1,820     1,526
  5 or 6                  1,774     1,513     1,226
  7 to 9                  2,203     2,124     1,414
  10 to 14                1,448     1,403     1,411
  15 to 19                  486       575       612
  20 to 49                  454       935     1,197
  50 to 99                   99       271       444
  100 +                      42        57        66

Source: Census Data: 1992, 1997, 2002

Distribution of General, Specialty and College Bookstores
Number of Establishment by Employees: 1997 vs. 2002


                          1997    2002    Pet. Chg.

All establishments        7,693   6,326     -17.77
Year round                6,778   5,526     -18.47
No employees                21       2      -90.48
  1 employee               660     519      -21.36
  2 employee               592     450      -23.99
  3 or 4 employees         988     703      -28.85
  5 or 6 employees         898     714      -20.49
  7 to 9 employees        1,481    822       -44.5
  10 to 14 employees       915     761      -16.83
  15 to 19 employees       334     307       -8.08
  20 to 49 employees       654     833       27.37
  50 to 99 employees       212     382       80.19
  100 employees or more     23      33       43.48
Not operated for
  the entire year          915     800      -12.57


                          1997    2,002   Pet. Chg.

All establishments        2,980   2,695      -9.65
Year round                2,529   2,402      -5.02
No employees                 7      --          --
  1 employee               323     281         -13
  2 employee               308     258      -16.23
  3 or 4 employees         559     466      -16.64
  5 or 6 employees         406     277      -31.77
  7 to 9 employees         409     340      -16.87
  10 to 14 employees       285     412       44.56
  15 to 19 employees       119     191        60.5
  20 to 49 employees       104     168       61.54
  50 to 99 employees         6       8       33.33
  100 employees or more      3       1      -66.67
Not operated for
  the entire year          451     293      -35.03


                          1997    2002    Pet. Chg.

All establishments        1,690   1,839       8.82
Year round                1,515   1,695      11.88
No employees                --      --
  1 employee                73      63       -13.7
  2 employee               140     154          10
  3 or 4 employees         273     357       30.77
  5 or 6 employees         209     235       12.44
  7 to 9 employees         234     252        7.69
  10 to 14 employees       203     238       17.24
  15 to 19 employees       122     114       -6.56
  20 to 49 employees       177     196      110.73
  50 to 99 employees        53      54        1.89
  100 employees or more     31      32        3.23
Not operated for
  the entire year          175     144      -17.71

Sources: Census Data: 1997, 2002.

Firms and Sales Distribution by Employees: 1992, 1997, 2002


                           1992           1997           2002
By employees:
  less than 5             3,860          2,886          2,312
  5 to 9                  1,613          1,471          1,146
  10 to 19                  701            741            700
  20 to 49                  307            311            311
  50 to 99                   84             96             77
  100 to 249                 43             57             51
  250 to 499                 15             11              8
  500 to 999                  6              2              3
  1000 employees              4             11              8
    or more
                                     Pet. Chg.

                        1992-97        1992-02        1997-02
By employees:
  less than 5            -25.23         -40.10         -19.89
  5 to 9                  -8.80         -28.95         -22.09
  10 to 19                 5.71          -0.14          -5.53
  20 to 49                 1.30           1.30           0.00
  50 to 99                14.29          -8.33         -19.79
  100 to 249              32.56          18.60         -10.53
  250 to 499             -26.67         -46.67         -27.27
  500 to 999             -66.67         -50.00          50.00
  1000 employees         175.00         100.00         -27.27
    or more

                                   Sales ('000)

                           1992           1997           2002
By employees:
  less than 5           727,202        594,266        536,655
  5 to 9                699,204        694,959        587,831
  10 to 19              647,903        710,979        750,050
  20 to 49              718,053        740,018        755,241
  50 to 99              519,454        643,289        513,401
  100 to 249            456,133             --             --
  250 to 499            433,227        358,037        292,819
  500 to 999            362,982             --             --
  1000 employees      3,306,717      7,672,510     10,680,403
    or more
                                     Pet. Chg.

                        1992-97        1992-02        1997-02
By employees:
  less than 5            -18.28         -26.20          -9.69
  5 to 9                  -0.61         -15.93         -15.42
  10 to 19                 9.74          15.77           5.50
  20 to 49                 3.06           5.18           2.06
  50 to 99                23.84          -1.17         -20.19
  100 to 249                 --             --             --
  250 to 499             -17.36         -32.41         -18.22
  500 to 999               0.00           0.00           0.00
  1000 employees         132.03         222.99          39.20
    or more

Sources: Census Data: 1992, 1997, 2002
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Author:Szenberg, Michael; Ramrattan, Lall
Publication:American Economist
Geographic Code:1USA
Date:Mar 22, 2015
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