The age distribution of business firms

Flavio Calvino, Daniele Giachini and Mattia Guerini

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

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: 2020-07-26
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ent, nep-sbm and nep-tid
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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)
Working Paper: The age distribution of business firms (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2020/20

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