An Empirical Study of Net Job Creation, Firm Size and Firm Age in China

Boyang You and Conglai Fan

Journal of Entrepreneurship and Innovation in Emerging Economies, 2020, vol. 6, issue 1, 220-231

Abstract: Abstract Based on the data set from Chinese Industrial Enterprises Database (2003–2008), this article first quantifies the net job creation of industrial enterprises in China by three methods: the base-year method ( Birch, 1979 ), the average-year method ( Davis, Haltiwanger, & Schuh, 1996 ) and the dynamic method (Davidsson, 1998). After evaluating from the results, it is concluded that the dynamic method is more precise than others. By adapting the dynamic method to the database, this article reaffirms that small and medium enterprises (SMEs) in China are the dominated power in terms of job creation. Furthermore, relationships between net job creation and several enterprise characteristics, including enterprise size, age, average salary and asset are investigated with the data calculated by the dynamic method. Instead of conventional linear regressions, a lognormal simulation is found to be more suitable to describe those relationships. Finally, the conclusion in this article indicates that not only the SMEs but also young enterprises (under the age of 5) are the major force in creating jobs in China.

Keywords: Net Job creation; firm size; firm age; dynamic method; lognormal model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/2393957519899555 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:jouent:v:6:y:2020:i:1:p:220-231

DOI: 10.1177/2393957519899555

Access Statistics for this article

More articles in Journal of Entrepreneurship and Innovation in Emerging Economies from Entrepreneurship Development Institute of India
Bibliographic data for series maintained by SAGE Publications ().