Empirical Evidence on Firm Growth and Jobs in Developing Countries

Johanne Buba, Alvaro Franco Gonzalez and Anam Rizvi

No 32691118, Jobs Group Papers, Notes, and Guides from The World Bank

Abstract: Economic growth does not contribute enough to job creation. As shown in Merotto, weber and Aterido (2018), a bit more than half of growth episodes contributed to reducing unemployment. A significant part of this relationship between growth and jobs is centered around firms. Firms are more likely to hire when growing. For that reason, any discussion on how to get more jobs needs to respond to questions about firm performance. This review discusses the barriers to firm growth and performance, namely limited access to finance, frictions on the labor market, lack of know-how, limited access to technology and the role of markets. It synthesizes the main lessons on firm growth from firm-level experiments that address these constraints and when possible, focuses on the impacts of these interventions on jobs. The objective is to provide evidence that can guide practitioners who seek to promote jobs in the context of private sector development programming. Empirical Evidence on Firm Growth and Jobs in Developing Countries

Keywords: access to finance; access to financial service; empirical evidence; firm growth; data collection effort; Internally Displaced Person; labor market performance; privileges and immunity; business environment; private investor; employment impact; representative sample; firm-level survey; external financing; macroeconomic environment; paper issue; accurate assessment; retail firms; gender participation; annual sale; best practice; capacity utilization; several countries; target setting; sole responsibility; original work; commercial purpose; research need; copyright owner; policy option; market study; Market Studies; job growth; survey respondent; management experience (search for similar items in EconPapers)
Pages: 70
Date: 2020-12-18
New Economics Papers: this item is included in nep-ent and nep-fdg
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