Entrepreneurship, Job Creation, and Wage Growth

Nikolaj Malchow-Møller, Bertel Schjerning and Anders Sørensen

No 2009-01, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics

Abstract: This paper analyses the importance of entrepreneurs for job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments – subsets which allow us to more precisely capture the "truly new" or "entrepreneurial" establishments than in previous studies. Using these data, we find that while new establishments in general account for one third of the gross job creation in the economy, entrepreneurial establishments are responsible for around 25% of this, and thus only account for about 8% of total gross job creation in the economy. However, entrepreneurial establishments seem to generate more additional jobs than other new establishments in the years following entry. Finally, the jobs generated by entrepreneurial establishments are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages.

Keywords: job creation; entrepreneurial establishments; wage growth (search for similar items in EconPapers)
JEL-codes: J21 J31 L26 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2009-01
New Economics Papers: this item is included in nep-ent, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Entrepreneurship, job creation and wage growth (2011)
Working Paper: Entrepreneurship, job Creation, and Wage Growth (2008)
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