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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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    1. Haltiwanger, John C. & Scarpetta, Stefano & Schweiger, Helena, 2006. "Assessing Job Flows across Countries: The Role of Industry, Firm Size and Regulations," IZA Discussion Papers 2450, Institute for the Study of Labor (IZA).
    2. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2003. "Comparative Analysis of Firm Demographics and Survival: Micro-Level Evidence for the OECD Countries," OECD Economics Department Working Papers 348, OECD Publishing.
    3. Bartelsman, Eric & Haltiwanger, John C. & Scarpetta, Stefano, 2004. "Microeconomic Evidence of Creative Destruction in Industrial and Developing Countries," IZA Discussion Papers 1374, Institute for the Study of Labor (IZA).
    4. John Haltiwanger, 2012. "Job Creation and Firm Dynamics in the United States," NBER Chapters,in: Innovation Policy and the Economy, Volume 12, pages 17-38 National Bureau of Economic Research, Inc.
    5. Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 53-82.
    6. Luís M B Cabral & José Mata, 2003. "On the Evolution of the Firm Size Distribution: Facts and Theory," American Economic Review, American Economic Association, vol. 93(4), pages 1075-1090, September.
    7. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    8. 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.
    9. Bassanini, Andrea & Marianna, Pascal, 2009. "Looking Inside the Perpetual-Motion Machine: Job and Worker Flows in OECD Countries," IZA Discussion Papers 4452, Institute for the Study of Labor (IZA).
    10. Steven Vale, 2006. "The International comparability of Business Start-up Rates Final Report," OECD Statistics Working Papers 2006/4, OECD Publishing.
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    Citations

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    Cited by:

    1. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.
    2. Chiara Criscuolo & Peter N. Gal & Carlo Menon, 2014. "The Dynamics of Employment Growth: New Evidence from 18 Countries," CEP Discussion Papers dp1274, Centre for Economic Performance, LSE.
    3. 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.
    4. 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.
    5. repec:gam:jsusta:v:9:y:2017:i:7:p:1159-:d:103489 is not listed on IDEAS

    More about this item

    Keywords

    employment; business size; business age; cohorts; job creation;

    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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