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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (Aug. 13, 1985)
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SOFT DRINKS I COUPON GOOD MONDAY thru SUNDAY 686-9598 1211 Alder on Campus STORE HOURS: 11 30-Midnight Monday Friday 3 30 pm Midnight Saturday t Sunday DELIVERY HOURS Spin Midnight Monday Sunday I ICLIP COUPON* Study blames lack of new firms Professor contradicts job theory A new study by a University economist contradicts the popular belief that layoffs and plant closures cause most of the declines in employment over the business cycle. The real cause, according to a study by Randall F.berts, associate professor of economics, is a lack of new and expanding businesses In his study. Eberts compared employment trends in Oregon during the economic expansion years of 1976-78 and the period of economic decline from 1980-82. The study showed that job losses from firms going out of business and from layoffs were relatively constant during periods of economic recovery and decline. "The striking result of the study is the fact that the dif ference in the number of jobs created was not due to closings, but to the lack of openings of new firms.” Eberts says. Eberts’ data showed that Oregon's net employment plunged from a 18 percent in crease during .the 1978-78 recovery to a 2.8 • percent decrease. during the 1980-82 recession. The primary factor, he says, was a dramatic decline in the in the number of new and expanding businesses. From 1976 to 1978, a period of healthy economic growth na tionwide; closings 'contributed .9.1 percent to Oregon's employ ment loss and layoffs accounted ■for 8..4 percent. fluring the.deep recession of 1980-82, ‘closings were only slightly higher than’they Were during the ‘growth- period,, ac counting for 10.'5 percent of the loss in. employment: Layoffs' also stayed about the same diit- , ing the recession, 'accounting . for .9. l percent’ of the decline in the number of jobs.. - While the reasons that more new businesses start up and ex isting ones expand during recovery than during recession are dear — more confidence In the economyh less risk for a given amount of investment and greater availability of credit — the masons that closures and layoffs stay relatively constant is puzzling, Eberts said. A possible explanation, however, is that once a firm is whole, wood products plants hero continue to be shut down because Canadian a n d southeastern U.S. operations have gained a cost advantage over Northwest timber operations. The findings also suggest public policy that concentrates on preventing plant closures may lie misdirected. Kbprts says.’ ‘The striking result of the study is the fact that the difference in the number of jobs created was not due to closings, but to the lack of openings of new firms.’ — Randall Eberts established. it is likely to close for reasons other than cyclical turns in the economy. Eberts says. These' “other" reasons may include structural changes, such as new technologies and . shifts in.consumer demand. Kberts points to Oregon's wood-products industry as ah. obvious example of an industry that is being deeply affected by structural changes that trans cend the business cycle. Despite a turnaround in the housing in: dustry and the economy as a "Since firms are more likely: to die as the result of major structural changes in the na tional economy than fmm .short term regional downturns, legislation designed to prevent closures- may be holding onto the past;" Eberts says, "Measures to ease peoples' transition; to new economic at: tivity are probably appropriate; but we can't have a yitnl economy by holding onto in dustries that are no longer competitive." departments update Cell findings reported Four University biology researchers reported -their findings'rin-cell specialization at an interna •.tio'na.l Biologists' conference in l .os Angelos last week, i '• ; '.. .; • • . ‘James Weston, biology professor. Cary Ci * ment- arfcl .Michael. Marusich; both post-doctoral .fellows, and Kristine Vogel, graduate student, were four of more than 2.000 scientists from 103 .countries attending the 1.0th Congress of the In ternatiohal.Societyoflle.velop.mental Biologists The University researchers have been study*' inga.specific set.of embryohic cells, called neural cfest cells’, that develop into the peripheral ncr-. vous'system. ... ’ ; Their; work may. help scientists who are working'to f[nd..cures and better ways to treat such’genetically determined defects as familial dysautonomia. and Elephant Man:s disease. Professor awarded prize „ Eugene Luks. professof and bead of the com puter and information science department at the University. was'awarded lhe 1985 D.K. Fulkarson prize by the Mathematical. Programming Society in confuncfion .with the American Mathematical Society. ; The prize recognizes outstanding papers in discrete mathematic s. Luks.orie of three winners, was chosen for an article on graph isomorphism that appeared in the Journal of (Computer ami System Sciences in 1982; Luks. 45;„ has headed the University, com puter and information science department since September 1983 . He was a mathematics and com puler science professor at Buckneil University and -at Tufts University before coming to the University. An honors graduate of the City College of New York, liiks earned his doctoral degree from the Massachusetts .institute of Technology lie is the author of more than 35 research papers in mathematics, statistics and theory of computation. Luks is also the associate editor of the journal of Algorithms. (kmipiled by Kirsten Bolin DIM SUM Evwy ¥£^*1.95 Sushi Lunch Also featuring: Fishball Noodle Soup Won Ton .Noodle Soup Hoy Lum Gar Kuhn »l? *1 .tJL And Try Us For Dinner CHINA BLUE kist.iiir.iiil HV> K. I.Mh U.*-2>02 HAPPY HOUR 5pm-Clo8ing 7 Otysi 860 E. I 3th 344-7894 HOURS . 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