Have Exchange-Listed Firms Become Less Important for the Economy?

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Schlingemann, Frederik P, Stulz, René M
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2020
• Subjects: Employment; GDP; Gross Domestic Product; Securities markets

The firms listed on the stock market in aggregate contribute less to total non-farm employment and GDP now than in the 1970s. A major reason for this development is the decline of manufacturing and the growth of the service economy as firms providing services are less likely to be listed on exchange...