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Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison

Anyadike-Danes, Michael, Carl Magnus Bjuggren (), Sandra Gottschalk, Werner Hölzl (), Dan Johansson (), Mika Maliranta () and Anja Myrann
Additional contact information
Anyadike-Danes, Michael: Aston University, Postal: Aston Business School and Enterprise Research CentreAston Triangle, Birmingham, B4 7ET, United Kingdom
Sandra Gottschalk: Centre for European Economic Research (ZEW), Postal: L7,1 , D-68161 Mannheim , Germany
Anja Myrann: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, NO-0349 Oslo, Norway

No 84, HUI Working Papers from HUI Research

Abstract: The contribution of different-sized businesses to job creation continues to attract policymakers’ attention, however, it has recently been recognized that conclusions about size were confounded with the effect of age. We probe the role of size, controlling for age, by comparing the cohorts of firms born in 1998 over their first decade of life, using variation across half a dozen northern European countries Austria, Finland, Germany, Norway, Sweden, and the UK to pin down the effects. We find that a very small proportion of the smallest firms play a crucial role in accounting for cross-country differences in job growth.

Keywords: employment; business size; business age; cohorts; job creation (search for similar items in EconPapers)
JEL-codes: E24 L25 M13 (search for similar items in EconPapers)
Date: 2013-03-13
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