The Age Distribution of Business Firms
Daniele Giachini and
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Flavio Calvino: OECD Directorate for Science, Technology and Innovation
Daniele Giachini: Sant’Anna School of Advanced Studies
No 2020-36, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France
We investigate upon the shape and the determinants of the age distribution of business firms. By employing a novel dataset covering the population of French businesses, we highlight that a geometric law provides a reasonable approximation for the age distribution. However, relevant systematic deviations and sectoral heterogeneity appear. We develop a stochastic model of firm dynamics to explain the mechanisms behind this evidence and relate them to business dynamism. Results reveal a long-term decline in entry rates and lower survival probabilities of young firms. Our findings bear important implications for aggregate outcomes, notably employment growth.
Keywords: Firm demographics; age distribution; business dynamism (search for similar items in EconPapers)
JEL-codes: L11 L22 M13 M21 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-bec, nep-eff, nep-ent, nep-ind, nep-ore and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2020-36
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