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Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison

  • 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)

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.

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Paper provided by HUI Research in its series HUI Working Papers with number 84.

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Length: 41 pages
Date of creation: 13 Mar 2013
Date of revision:
Handle: RePEc:hhs:huiwps:0084
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  1. John Haltiwanger, 2012. "Job Creation and Firm Dynamics in the United States," Innovation Policy and the Economy, University of Chicago Press, vol. 12(1), pages 17 - 38.
  2. 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).
  3. 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).
  4. Cabral, Luís M B & Mata, José, 2001. "On the Evolution of the Firm Size Distribution: Facts and Theory," CEPR Discussion Papers 3045, C.E.P.R. Discussion Papers.
  5. 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).
  6. 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).
  7. Steven Vale, 2006. "The International comparability of Business Start-up Rates Final Report," OECD Statistics Working Papers 2006/4, OECD Publishing.
  8. repec:dgr:uvatin:2004114 is not listed on IDEAS
  9. repec:dgr:uvatin:20040114 is not listed on IDEAS
  10. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
  11. 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.
  12. Ericson, Richard & Pakes, Ariel, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Wiley Blackwell, vol. 62(1), pages 53-82, January.
  13. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-50, September.
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