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Firm Level Job Creation Rates Over The Business Cycle

Werner Hölzl () and Peter Huber ()

Asian Economic and Financial Review, 2014, vol. 4, issue 6, 837-852

Abstract: We study the evolution and cyclical dependence of the cross sectional distribution of firm level job creation rates from 1975 to 2004 for the Austrian private sector. The share of firms not adjusting has declined over time, but the share of entries, exits, growing and declining firms increased. The share of firms adjusting is higher in upswings than in downturns and the higher order moments of the job creation distribution follow distinct cyclical patterns. The smallest firms and firms at the extremes of the growth rate distribution are largely unaffected by the business cycle.

Keywords: Employment adjustment; Business cycle; Firm growth. (search for similar items in EconPapers)
Date: 2014
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