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The start-up gap and jobs

Author

Listed:
  • Shyngys Karimov

    (University of Leuven (KU Leuven))

  • Jozef Konings

    (University of Leuven (KU Leuven)
    CEPR
    University of Liverpool Management School)

Abstract

The present paper uses quarterly data from the social security registry covering the full population of Belgian firms to analyze how the secular decline in the firm entry rate affects aggregate employment. To this end, we disentangle the entry margin into two channels: the overall employment of new firms (the start-up employment) and the share of start-up employment by sector (the sectoral composition of start-ups). We find that the decline in start-up employment slowed down the growth rate of aggregate employment by 26% over the 2009Q2–2017Q1 period by shifting the age distribution of firms toward older firms. The sectoral composition of start-ups accelerated the decline in the manufacturing sector and prevented the distribution sector from a potential decline, while leaving the aggregate employment unchanged.

Suggested Citation

  • Shyngys Karimov & Jozef Konings, 2021. "The start-up gap and jobs," Small Business Economics, Springer, vol. 57(4), pages 2067-2084, December.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:4:d:10.1007_s11187-020-00395-z
    DOI: 10.1007/s11187-020-00395-z
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    References listed on IDEAS

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    Cited by:

    1. Gert Bijnens & Shyngys Karimov & Jozef Konings, 2023. "Does Automatic Wage Indexation Destroy Jobs? A Machine Learning Approach," De Economist, Springer, vol. 171(1), pages 85-117, March.

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    More about this item

    Keywords

    Startup; New firm growth; Firm growth; Employment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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