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An International Cohort Comparison of Size Effects on Job Growth

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Listed:
  • Anyadike-Danes, Michael

    (Aston Business School and Enterprise Research Centre, UK)

  • Bjuggren, Carl Magnus

    () (Research Institute of Industrial Economics (IFN))

  • Gottschalk, Sandra

    (ZEW, Germany)

  • Hölzl, Werner

    (WIFO, Austria)

  • Johansson, Dan

    () (HUI Research)

  • Maliranta, Mika

    (ETLA)

  • Myrann, Anja

    (Ragnar Frisch Centre for Economic Research, Norway)

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 size 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. A closer analysis reveals that the initial size distribution and survival rates do not seem to explain job growth differences between countries, rather it is a small number of rapidly growing firms that are driving this result.

Suggested Citation

  • Anyadike-Danes, Michael & Bjuggren, Carl Magnus & Gottschalk, Sandra & Hölzl, Werner & Johansson, Dan & Maliranta, Mika & Myrann, Anja, 2014. "An International Cohort Comparison of Size Effects on Job Growth," Working Paper Series 1019, Research Institute of Industrial Economics, revised 30 Nov 2014.
    • Handle: RePEc:hhs:iuiwop:1019
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    References listed on IDEAS

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    1. repec:spr:joevec:v:28:y:2018:i:1:d:10.1007_s00191-017-0549-x is not listed on IDEAS
    2. Giovanni Dosi & Emanuele Pugliese & Pietro Santoleri, 2017. "Growth and survival of the `fitter'? Evidence from US new-born firms," LEM Papers Series 2017/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Fornaro, Paolo & Luomaranta, Henri, 2015. "Small Versus Large Firms Employment Patterns in Finland: a Comparison," MPRA Paper 66979, University Library of Munich, Germany.
    4. Fornaro, Paolo & Luomaranta, Henri, 2016. "Job Creation and the Role of Dependencies," MPRA Paper 71586, University Library of Munich, Germany.
    5. Alex Coad & Julian S. Frankish & Richard G. Roberts & David J. Storey, 2016. "Predicting new venture survival and growth: Does the fog lift?," Small Business Economics, Springer, vol. 47(1), pages 217-241, June.
    6. Maliranta, Mika & Nurmi, Satu, 2016. "Business Owners, Employees and Firm Performance," ETLA Working Papers 42, The Research Institute of the Finnish Economy.
    7. Habermann, Harald, 2017. "Business takeovers and firm growth: Empirical evidence from a German panel," Working Papers 01/17, Institut für Mittelstandsforschung (IfM) Bonn.
    8. Andersson, Fredrik W. & Johansson, Dan & Karlsson, Johan & Lodefalk, Magnus & Poldahl, Andreas, 2017. "The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data," Working Papers 2017:1, Örebro University, School of Business.
    9. Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars, 2017. "Who Creates Jobs and Who Creates Productivity? Small versus Large versus Young versus Old," Working Paper Series 1189, Research Institute of Industrial Economics.
    10. repec:spr:joevec:v:28:y:2018:i:1:d:10.1007_s00191-017-0502-z is not listed on IDEAS

    More about this item

    Keywords

    Birth cohort; Firm age; Firm size; Firm survival; Firm growth;

    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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