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Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison

Author

Listed:
  • Anyadike-Danes, Michael

    (Aston University)

  • Bjuggren, Carl-Magnus

    (Linköping University)

  • Gottschalk, Sandra

    (Centre for European Economic Research (ZEW))

  • Hölzl, Werner

    (Austrian Institute of Economic Research (WIFO))

  • Johansson, Dan

    (HUI Research)

  • Maliranta, Mika

    (The Research Institute of the Finnish Economy (ETLA))

  • Myrann, Anja

    (Ragnar Frisch Centre for Economic Research)

Abstract

The contribution of different-sized businesses to job creation continues to attract policymakers’ attention, however, it has recently been recognized that conclusions about size were confounded with the effect of age. We probe the role of size, controlling for age, by comparing the cohorts of firms born in 1998 over their first decade of life, using variation across half a dozen northern European countries Austria, Finland, Germany, Norway, Sweden, and the UK to pin down the effects. We find that a very small proportion of the smallest firms play a crucial role in accounting for cross-country differences in job growth.

Suggested Citation

  • Anyadike-Danes, Michael & Bjuggren, Carl-Magnus & Gottschalk, Sandra & Hölzl, Werner & Johansson, Dan & Maliranta, Mika & Myrann, Anja, 2013. "Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison," HUI Working Papers 84, HUI Research.
    • Handle: RePEc:hhs:huiwps:0084
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    References listed on IDEAS

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    Cited by:

    1. Chiara Criscuolo & Peter N. Gal & Carlo Menon, 2017. "Do micro start-ups fuel job creation? Cross-country evidence from the DynEmp Express database," Small Business Economics, Springer, vol. 48(2), pages 393-412, February.
    2. Andrew A. Toole & Dirk Czarnitzki & Christian Rammer, 2015. "University research alliances, absorptive capacity, and the contribution of startups to employment growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(5), pages 532-549, July.
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    4. Criscuolo, Chiara & Gal, Peter N. & Menon, Carlo, 2014. "The dynamics of employment growth: new evidence from 18 countries," LSE Research Online Documents on Economics 60286, London School of Economics and Political Science, LSE Library.
    5. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.

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    More about this item

    Keywords

    employment; business size; business age; cohorts; job creation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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