How are firms affected by the crisis and how do they react?

Ioana Neamtu and Niels Westergård-Nielsen ()
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Ioana Neamtu: Department of Economics and Business, Aarhus University, Denmark

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: The recession started in 2008 constituted a massive shock to consumers and most firms all over the Western World. Firms were hit on their sales and finances. However, little is known on how badly they were hit and how they coped with the difficulties. This paper gives a rare and fairly early glimpse on how private Danish firms were hit and how they adjusted in order to survive the crisis. The first phase of the recession led to the largest loss of jobs since the oil crisis, in Denmark. Four years into the recession we see that larger firms are gradually creating jobs again, although the overall job growth is still negative (Statistics Denmark, 2012). Consequently we present an assessment of factors that have been important in explaining why some firms have been able to recreate jobs and others have not. Especially, we point at the critical role of access to credit in creating and destroying jobs. The paper is based on a survey run on all Danish firms with more than 20 employees in November and December 2011.

Keywords: Crisis; impact on firms; credit constraints; job growth and destruction; survey (search for similar items in EconPapers)
JEL-codes: D22 E32 J33 J62 (search for similar items in EconPapers)
Pages: 27
Date: 2012-05-14
New Economics Papers: this item is included in nep-bec
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Citations: View citations in EconPapers (2)

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Working Paper: How Are Firms Affected by the Crisis and How Do They React? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2012-11

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