IDEAS home Printed from https://ideas.repec.org/p/zbw/kitwps/39.html
   My bibliography  Save this paper

Entrepreneurial aging and employment growth in the context of extreme growth events

Author

Listed:
  • Schimke, Antje

Abstract

This paper investigates empirical evidence on the linkage between entrepreneurial aging of the workforce and firm growth. More precisely, it aims to analyse the impact of aging on employment growth in the context of extreme growth events. Basically, the study is conducted to capture the overall impact of the average age structure and aging effect on employment growth. For the empirical estimation we apply a linked employer-employee dataset providing 2.100 German firms covering the time period from 2001 to 2006. Using quantile regression techniques, the specific quantiles θ of extremely growing (θ 0.90), medium growing (θ 0.50) or shrinking firms (θ 0.10) can be explicitly analysed. The results show, on average, that employment growth seems to decline as the workforce is getting older. Put differently, extreme growth events seem to be less likely when the average aging of the workforce rapidly accelerates. Firm-specific characteristics such as size, industry affiliation and location matter hereby.

Suggested Citation

  • Schimke, Antje, 2012. "Entrepreneurial aging and employment growth in the context of extreme growth events," Working Paper Series in Economics 39, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    • Handle: RePEc:zbw:kitwps:39
    DOI: 10.5445/IR/1000028286
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/58243/1/716003120.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.5445/IR/1000028286?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alex Coad, 2009. "The Growth of Firms," Books, Edward Elgar Publishing, number 13424.
    2. Gonzalez-Eiras, Martín & Niepelt, Dirk, 2012. "Ageing, government budgets, retirement, and growth," European Economic Review, Elsevier, vol. 56(1), pages 97-115.
    3. Jin‐Tan Liu & Meng‐Wen Tsou & Ping Wang, 2010. "Workforce Composition And Firm Productivity: Evidence From Taiwan," Economic Inquiry, Western Economic Association International, vol. 48(4), pages 1032-1047, October.
    4. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    5. Lex Borghans & Bas Weel, 2006. "The Division of Labour, Worker Organisation, and Technological Change," Economic Journal, Royal Economic Society, vol. 116(509), pages 45-72, February.
    6. Coase, R H, 1988. "The Nature of the Firm: Influence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 33-47, Spring.
    7. Victor Chernozhukov, 2005. "Extremal quantile regression," Papers math/0505639, arXiv.org.
    8. Ilmakunnas, Pekka & Maliranta, Mika, 2007. "Aging, Labor Turnover and Firm Performance," Discussion Papers 1092, The Research Institute of the Finnish Economy.
    9. Coase, R H, 1988. "The Nature of the Firm: Meaning," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 19-32, Spring.
    10. Schneider, Lutz, 2007. "Alterung und technologisches Innovationspotential : Eine Linked-Employer-Employee-Analyse," IWH Discussion Papers 2/2007, Halle Institute for Economic Research (IWH).
    11. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
    12. Alexander Ludwig, 2005. "Aging and Economic Growth: The Role of Factor Markets and of Fundamental Pension Reforms," MEA discussion paper series 05094, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    13. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 79-107, April.
    14. Pekka Ilmakunnas & Seija Ilmakunnas, 2011. "Diversity at the Workplace: Whom Does it Benefit?," De Economist, Springer, vol. 159(2), pages 223-255, June.
    15. Christian Grund & Niels Westergaard‐Nielsen, 2008. "Age structure of the workforce and firm performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(5), pages 410-422, August.
    16. Coad, Alex & Rao, Rekha, 2008. "Innovation and firm growth in high-tech sectors: A quantile regression approach," Research Policy, Elsevier, vol. 37(4), pages 633-648, May.
    17. Leora Friedberg, 2003. "The Impact of Technological Change on Older Workers: Evidence from Data on Computer Use," ILR Review, Cornell University, ILR School, vol. 56(3), pages 511-529, April.
    18. Giulio Bottazzi & Elena Cefis & Giovanni Dosi, 2002. "Corporate growth and industrial structures: some evidence from the Italian manufacturing industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 705-723, August.
    19. Jenny Meyer, 2011. "Workforce age and technology adoption in small and medium-sized service firms," Small Business Economics, Springer, vol. 37(3), pages 305-324, October.
    20. Petri Rouvinen, 2002. "Characteristics of product and process innovators: some evidence from the Finnish innovation survey," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 575-580.
    21. Borghans, L. & ter Weel, B.J., 2002. "Do older workers have more trouble using a computer than younger workers?," ROA Research Memorandum 1E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    22. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
    23. Birgit Verworn & Christiane Hipp, 2009. "Does the ageing workforce hamper the innovativeness of firms? (No) evidence from Germany," International Journal of Human Resources Development and Management, Inderscience Enterprises Ltd, vol. 9(2/3), pages 180-197.
    24. Fernando Muñoz-Bullón & Miguel A. Malo, 2003. "Employment status mobility from a life-cycle perspective," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 9(7), pages 119-162.
    25. Giorgio Fagiolo & Mauro Napoletano & Andrea Roventini, 2006. "How Do Output Growth Rate Distributions Look Like? Some Time-Series Evidence on OECD Countries," Papers physics/0607180, arXiv.org.
    26. G. Bottazzi & E. Cefis & G. Dosi & A. Secchi, 2007. "Invariances and Diversities in the Patterns of Industrial Evolution: Some Evidence from Italian Manufacturing Industries," Small Business Economics, Springer, vol. 29(1), pages 137-159, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Harms, Rainer & Luck, Florian & Kraus, Sascha & Walsh, Steven, 2014. "On the motivational drivers of gray entrepreneurship: An exploratory study," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 358-365.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schimke, Antje, 2014. "Aging workforce and firm growth in the context of "extreme" employment growth events," Working Paper Series in Economics 54, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    2. Schimke, Antje, 2014. "Ageing workforce and firm growth in the context of “extreme” employment growth events," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 86-100.
    3. Duschl, Matthias & Schimke, Antje & Brenner, Thomas & Luxen, Dennis, 2011. "Firm growth and the spatial impact of geolocated external factors: Empirical evidence for German manufacturing firms," Working Paper Series in Economics 36, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    4. Matthias Duschl & Antje Schimke & Thomas Brenner & Dennis Luxen, 2011. "Firm Growth and the Spatial Impact of Geolocated External Factors – Empirical Evidence for German Manufacturing Firms," Working Papers on Innovation and Space 2011-03, Philipps University Marburg, Department of Geography.
    5. Jenny Meyer, 2011. "Workforce age and technology adoption in small and medium-sized service firms," Small Business Economics, Springer, vol. 37(3), pages 305-324, October.
    6. Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2016. "Innovation and job creation: a sustainable relation?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 189-213, August.
    7. Jerzy Rosinski, 2012. "Attitudes of the IT staff against employing organization as a challenge for the development of IT businesses (Postawy pracownikow branzy IT wobec zatrudniajacych organizacji jako wyzwanie dla rozwoju ," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(38), pages 229-247.
    8. Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Does size or age of innovative firms affect their growth persistence? -Evidence from a panel of innovative Spanish firms-," JRC Working Papers on Corporate R&D and Innovation 2012-03, Joint Research Centre.
    9. Meyer, Jenny, 2008. "The Adoption of New Technologies and the Age Structure of the Workforce," ZEW Discussion Papers 08-045, ZEW - Leibniz Centre for European Economic Research.
    10. Meyer, Jenny, 2007. "Older Workers and the Adoption of New Technologies," ZEW Discussion Papers 07-050, ZEW - Leibniz Centre for European Economic Research.
    11. Alex Coad & Werner Hölzl, 2009. "On the Autocorrelation of Growth Rates," Journal of Industry, Competition and Trade, Springer, vol. 9(2), pages 139-166, June.
    12. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    13. Alex Coad & Werner Hölzl, 2012. "Firm Growth: Empirical Analysis," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 24, Edward Elgar Publishing.
    14. Yan Chen & Michael Song, 2022. "The persistence and dynamics of new venture growth," Small Business Economics, Springer, vol. 58(1), pages 303-322, January.
    15. Marco Capasso & Elena Cefis & Alessandro Sapio, 2013. "Reconciling quantile autoregressions of firm size and variance–size scaling," Small Business Economics, Springer, vol. 41(3), pages 609-632, October.
    16. Habermann, Harald, 2017. "Business takeovers and firm growth: Empirical evidence from a German panel," Working Papers 01/17, Institut für Mittelstandsforschung (IfM) Bonn.
    17. Duschl Matthias & Brenner Thomas & Schimke Antje & Luxen Dennis, 2014. "Firm Growth and the Spatial Impact of Geolocated External Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 234-256, April.
    18. Aziza Garsaa & Nadine Levratto, 2014. "Is job creation dependent on the local context? An analysis of French industrial establishments over the period 2004-2010," EconomiX Working Papers 2014-49, University of Paris Nanterre, EconomiX.
    19. Alex Coad, 2018. "Firm age: a survey," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 13-43, January.
    20. Alex Coad & Agustí Segarra-Blasco & Mercedes Teruel, 2021. "A bit of basic, a bit of applied? R&D strategies and firm performance," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1758-1783, December.

    More about this item

    Keywords

    entrepreneurial aging; firm growth; employment growth; extreme growth events; age; workforce;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:kitwps:39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwkitde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.