Employment generation by small firms in Spain

Paloma Lopez-Garcia (), Sergio Puente and Angel Luis Gómez

No 903, Occasional Papers from Banco de España

Abstract: Despite the relevance in terms of policy, we still know little in Spain about where and by whom jobs are created, and how that is affecting the size distribution of firms. The main innovation of this paper is to use a rich database that overcomes the problems encountered by other firm-level studies to shed some light on the employment generation of small firms in Spain. We find that small firms contribute to employment disproportionately across all sectors of the economy although the difference between their employment and job creation share is largest in the manufacturing sector. The job creators in that sector are both new and established firms whereas only new small firms outperform their larger counterparts in the service sector. The large annual job creation of the small firm size class is shifting the firm size distribution towards the very small production units, although not uniformly across industries of different technology intensity.

Keywords: Firm-level data; employment creation and destruction; and firm size distribution (search for similar items in EconPapers)
JEL-codes: J21 L11 L53 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2009-03
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eec, nep-ent and nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:0903

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