The age distribution of business firms

Flavio Calvino, Daniele Giachini and Mattia Guerini
Additional contact information
Flavio Calvino: OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
Daniele Giachini: Institute of Economics of Sant'Anna [Pisa] - SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]

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Abstract: We investigate upon the shape and the determinants of the age distribution of business firms. By employing a novel dataset covering the population of French businesses, we highlight that a geometric law provides a reasonable approximation for the age distribution. However, relevant systematic deviations and sectoral heterogeneity appear. We develop a stochastic model of firm dynamics to explain the mechanisms behind this evidence and relate them to business dynamism. Results reveal a long-term decline in entry rates and lower survival probabilities of young firms. Our findings bear important implications for aggregate outcomes, notably employment growth.

Keywords: Firm demographics; age distribution; business dynamism (search for similar items in EconPapers)
Date: 2020-12-04
New Economics Papers: this item is included in nep-bec, nep-ent, nep-sbm and nep-tid
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03040286
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The age distribution of business firms (2022)
Working Paper: The Age Distribution of Business Firms (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-03040286

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