The life cycle of new firms and its impact on job creation and job destruction
AbstractThis paper examines the post-entry performance of new firms and their impact on job creation and job destruction in the Belgian economy. We use a unique longitudinal data set drawn from the published annual accounts for the period 1985-1994. Our main conclusions can be summarized as follows:(a) The exit increases over the first three years of a firm's life and stabilizes afterwards.(b) Firms with a small initial size have a lower exit probability than firms with a large initial size.© Firms operating in turbulent sectors experience a higher exit probability than firms operating in sectors with low turbulence.(d) Over the period 1985-1994, Belgian firms created on average 7,7% new jobs, while 7,2% existing jobs were destroyed. New firms create 26% of all new jobs. Firm exit accounts for 25% of all job destruction.(e) Small firms create disproportionately more jobs compared to large firms.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/220528.
Date of creation: 1996
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Web page: http://www.kuleuven.be
Performance; Economy; Data; Probability;
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- JosÃ© Miguel Benavente & Christian Ferrada, 2004. "Probability of Survival of New Manufacturing Plants: the case of Chile," Econometric Society 2004 Latin American Meetings 305, Econometric Society.
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