Establishment size and employment stability in logging and sawmilling: a comparative analysis

Abstract

Wood products employment stability (defined as year-to-year variation) was examined as a function of establishment size (grouped by number of employees). Small- and medium-sized establishments were consistently found to be more stable than large establishments. Comparison of Washington, Oregon, the United States, and Japan showed that the relationship between establishment size and employment stability was maintained regardless of long-term growth or decline in wood-products employment. Moreover, the smaller wood-products establishments in the United States were found to be more stable than the smaller establishments in other manufacturing industries. Structural stability in employment has been associated with the highly competitive nature of smaller wood-products establishments. Employment stability can best be promoted by policies that support the continued viability of smaller establishments.