Determinants of job creation in eleven new EU member states : evidence from firm level data
AbstractThis paper builds on the analysis of job creation developed in World Bank (2013) to provide an empirical investigation of the industry and firm-specific determinants of the job creation process in eleven new European Union (EU11) economies. It relies on the Amadeus dataset of firms during 2002-2009. The main results indicate that during the years prior to the global financial crisis, traditional industries were crucial for the net creation of jobs in EU11. However, traditional industries were the ones most severely affected by the financial crisis. By contrast, services firms were less vulnerable to the economic downturn. At the firm level, small and young firms registered the highest employment growth rates. The empirical results also indicate that more productive firms tended to be less vulnerable to economic downturns. Moreover, the results demonstrate that the perceived quality of the business climate by the EU11 enterprises is correlated with not only the firms'employment growth, but also their productivity. In the post-crisis period, poor business restrictions were negatively associated with the creation of jobs. All these findings hold for the group of high-growth firms that disproportionately accounted for the creation of new jobs in the EU11 economies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6533.
Date of creation: 01 Jul 2013
Date of revision:
Labor Markets; Microfinance; Small Scale Enterprise; Environmental Economics&Policies; Labor Policies;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-CSE-2013-07-20 (Economics of Strategic Management)
- NEP-EEC-2013-07-20 (European Economics)
- NEP-ENT-2013-07-20 (Entrepreneurship)
- NEP-LAB-2013-07-20 (Labour Economics)
- NEP-LMA-2013-07-20 (Labor Markets - Supply, Demand, & Wages)
- NEP-SBM-2013-07-20 (Small Business Management)
- NEP-TRA-2013-07-20 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bevan, Alan A. & Estrin, Saul, 2004. "The determinants of foreign direct investment into European transition economies," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 775-787, December.
- Neumark, David & Wall, Brandon & Zhang, Junfu, 2008.
"Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series,"
IZA Discussion Papers
3888, Institute for the Study of Labor (IZA).
- David Neumark & Brandon Wall & Junfu Zhang, 2011. "Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 16-29, August.
- James Levinsohn & Amil Petrin, 2003.
"Estimating Production Functions Using Inputs to Control for Unobservables,"
Review of Economic Studies, Wiley Blackwell,
Wiley Blackwell, vol. 70(2), pages 317-341, 04.
- James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
- Oberhofer, Harald & Pfaffermayr, Michael, 2010.
"Firm Growth in Multinational Corporate Groups,"
Working Papers in Economics and Finance, University of Salzburg
2010-7, University of Salzburg.
- Harald Oberhofer & Michael Pfaffermayr, . "Firm Growth in Multinational Corporate Groups," Working Papers, Faculty of Economics and Statistics, University of Innsbruck 2008-10, Faculty of Economics and Statistics, University of Innsbruck.
- Magnus Henrekson & Dan Johansson, 2010.
"Gazelles as job creators: a survey and interpretation of the evidence,"
Small Business Economics, Springer,
Springer, vol. 35(2), pages 227-244, September.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Ratio Working Papers, The Ratio Institute 117, The Ratio Institute.
- Henrekson, Magnus & Johansson, Dan, 2008. "Gazelles as Job Creators – A Survey and Interpretation of the Evidence," Working Paper Series, Research Institute of Industrial Economics 733, Research Institute of Industrial Economics.
- Davidsson, Per & Lindmark, Leif & Olofsson, Christer, 1998. " The Extent of Overestimation of Small Firm Job Creation--An Empirical Examination of the Regression Bias," Small Business Economics, Springer, Springer, vol. 11(1), pages 87-100, August.
- Andrea De Michelis & Marcello Estevão & Beth Anne Wilson, 2013. "Productivity or Employment: Is It a Choice?," International Productivity Monitor, Centre for the Study of Living Standards, Centre for the Study of Living Standards, vol. 25, pages 41-60, Spring.
- Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012.
"Who Creates Jobs? Estimating Job Creation Rates at the Firm Level,"
WIFO Working Papers, WIFO
- Huber, Peter & Oberhofer, Harald & Pfaffermayr , Michael, 2013. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," Working Papers in Economics and Finance, University of Salzburg 2013-5, University of Salzburg.
- Torfinn Harding & Beata S. Javorcik, 2011.
"Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows,"
Economic Journal, Royal Economic Society,
Royal Economic Society, vol. 121(557), pages 1445-1476, December.
- Torfinn Harding, Torfinn; Javorcik, Beata S., 2010. "Roll out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," CAGE Online Working Paper Series, Competitive Advantage in the Global Economy (CAGE) 18, Competitive Advantage in the Global Economy (CAGE).
- Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LP, StataCorp LP, vol. 5(3), pages 309-329, September.
- John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2010.
"Who Creates Jobs? Small vs. Large vs. Young,"
10-17, Center for Economic Studies, U.S. Census Bureau.
- P. Hart, 2000. "Theories of Firms' Growth and the Generation of Jobs," Review of Industrial Organization, Springer, Springer, vol. 17(3), pages 229-248, November.
- Cuaresma, Jesus Crespo & Oberhofer, Harald & Smits, Karlis & Vincelette, Gallina A, 2012. "Drivers of convergence in eleven eastern European countries," Policy Research Working Paper Series 6185, The World Bank.
- P. A. Geroski, 2005. "Understanding the implications of empirical work on corporate growth rates," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 129-138.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Dirk Pilat & Agnès Cimper & Karsten Bjerring Olsen & Colin Webb, 2006. "The Changing Nature of Manufacturing in OECD Economies," OECD Science, Technology and Industry Working Papers 2006/9, OECD Publishing.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.