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Who Creates Stable Jobs? Evidence from Brazil

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  • Brummund, Peter

    (University of Alabama)

  • Connolly, Laura

    (University of Alabama)

Abstract

Recent research shows that start-ups are important for job creation, but these firms are also inherently volatile. We use linked employer-employee data to examine the relative importance of firm age and firm size for job creation and destruction in Brazil. Firm age is a more important determinant of job creation in Brazil than firm size; young firms and start-ups create a relatively high number of jobs. However, young firms are also more likely to exit the market and have higher levels of employment volatility. We, therefore, condition the job creation analysis on job stability. Young firms and large firms create relatively more stable jobs in Brazil.

Suggested Citation

  • Brummund, Peter & Connolly, Laura, 2018. "Who Creates Stable Jobs? Evidence from Brazil," IZA Discussion Papers 12009, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12009
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    2. Bhaskar Jyoti Neog & Bimal Kishore Sahoo, 2020. "Job Reallocation Dynamics in India: Evidence from Large Manufacturing Plants," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 934-959, August.
    3. Rodrigo Ceni & Gabriel Merlo, 2021. "Twenty years of job flows in an emerging country," Documentos de Trabajo (working papers) 21-10, Instituto de Economía - IECON.

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    More about this item

    Keywords

    job creation; job stability; Brazilian labor market;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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