An International Cohort Comparison of Size Effects on Job Growth

Michael Anyadike-Danes, Carl Magnus Bjuggren, Sandra Gottschalk, Werner Hölzl, Dan Johansson, Mika Maliranta and Anja Myrann
Additional contact information
Michael Anyadike-Danes: Aston Business School and Enterprise Research Centre, UK
Sandra Gottschalk: ZEW, Germany
Anja Myrann: Ragnar Frisch Centre for Economic Research, Norway

No 1019, Working Paper Series from Research Institute of Industrial Economics

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.

Keywords: Birth cohort; Firm age; Firm size; Firm survival; Firm growth (search for similar items in EconPapers)
JEL-codes: E24 L25 M13 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-04-24, Revised 2014-11-30
New Economics Papers: this item is included in nep-bec, nep-ent, nep-eur, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: An international cohort comparison of size effects on job growth (2015)
Working Paper: An international cohort comparison of size effects on job growth (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1019

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