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Job creation and job types – New evidence from Danish entrepreneurs

Listed author(s):
  • Kuhn, Johan M.
  • Malchow-Møller, Nikolaj
  • Sørensen, Anders

We extend earlier analyses of the job creation of start-ups versus established firms by considering the educational content of the jobs created and destroyed. We define education-specific measures of job creation and job destruction at the firm level, and we use these measures to construct a measure of “surplus job creation”, defined as jobs created on top of any simultaneous destruction of similar jobs in incumbent firms in the same region and industry. Using Danish employer-employee data from 2002–2007 that identify the start-ups and that cover almost the entire private sector, these measures allow us to provide a more nuanced assessment of the role of entrepreneurial firms in the job-creation process than in previous studies. Our findings show that although start-ups are responsible for the entire overall net job creation, incumbents account for more than one-third of net job creation within high-skilled jobs. Moreover, start-ups “only” create approximately half of the surplus jobs and even less of the high-skilled surplus jobs. Finally, our approach allows us to characterise and identify differences across industries, educational groups and regions.

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File URL: http://www.sciencedirect.com/science/article/pii/S0014292115001865
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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 86 (2016)
Issue (Month): C ()
Pages: 161-187

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Handle: RePEc:eee:eecrev:v:86:y:2016:i:c:p:161-187
DOI: 10.1016/j.euroecorev.2015.12.002
Contact details of provider: Web page: http://www.elsevier.com/locate/eer

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