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The Role of Firm Size and Firm Age in Employment Growth: Evidence for Slovenia, 1996-2013

Biswajit Banerjee and Manca Jesenko

European Journal of Comparative Economics, 2016, vol. 13, issue 2, 199-219

Abstract: Using a nonparametric regression approach, this paper examines the role of firm size and firm age in net employment growth and the differential response of firms to the business cycle. An inverse univariate relationship between firm size and net employment growth disappears after controlling for firm age. With age control, the relationship between net employment growth and firm size is positive but diminishes with firm size. Young firms exhibit higher job creation and destruction rates and higher net employment growth rates than mature firms. Small and young firms are more sensitive with regard to net employment growth to the cyclical downturn than large and old firms.

Keywords: job creation; job destruction; net employment growth; firm size; firm age; Slovenia (search for similar items in EconPapers)
JEL-codes: D22 J6 L25 (search for similar items in EconPapers)
Date: 2016
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European Journal of Comparative Economics is currently edited by Matteo Migheli, Giovanni Ramello, Koji Domon, Peter Grajzl, David M. Kemme, Marcello Signorelli and Richard Watt

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Handle: RePEc:liu:liucej:v:13:y:2016:i:2:p:199-219