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On the Persistence of Job Creation in Old and New Firms

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Abstract

We suggest a new method to analyze the success of firm creation by looking at the persistence of new jobs created in old and in new firms. Compared to survival rates of new versus old firms, this measure has the advantage that the sustainability of job creation in different circumstances is investigated. We analyze 21 years of job creation in Austria and find that new jobs last significantly longer in new than in old firms. Moreover, the survival of new jobs depends upon the state of the business cycle at the time of job creation, on the number of jobs created, and, for existing firms, on firm age.

Suggested Citation

  • René Böheim & Alfred Stiglbauer & Rudolf Winter-Ebmer, 2008. "On the Persistence of Job Creation in Old and New Firms," Economics working papers 2008-04, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2008_04
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    Cited by:

    1. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, pages 733-755.
    2. Andreas Koch & Jochen Spaeth, 2009. "New Firms---Different Jobs? An Inquiry into the Quality of Employment in Start-ups and Incumbents," IAW Discussion Papers 50, Institut für Angewandte Wirtschaftsforschung (IAW).
    3. Kristian Behrens & Giordano Mion & Yasusada Murata & Jens Südekum, 2014. "Trade, Wages, And Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 1305-1348, November.

    More about this item

    Keywords

    job creation; new firms; reallocation; persistence;

    JEL classification:

    • 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
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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