When and How to Create a Job: The Survival of New Jobs in Austrian Firms

René Böheim, Alfred Stiglbauer () and Rudolf Winter-Ebmer

No 1602, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: While the volatility of job creations has been studied extensively, the survival chances of new jobs are less researched. The question when and how to expand a firm is of importance, both from the firms and from a macro perspective. Adjustment cost theories and arguments about option values of investment in firm expansion make predictions about the timing, sequencing and form of firm expansions. When we analyze 21 years of job creation in Austria, we find that the survival of new jobs (and of new firms) depends upon the state of the business cycle at the time of job creation, on the number of jobs created, and on firm age. Jobs in new firms last longer than new jobs in continuing firms.

Keywords: persistence; reallocation; business cycle; job creation (search for similar items in EconPapers)
JEL-codes: E24 E32 J23 J63 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005-05
New Economics Papers: this item is included in nep-eec, nep-ent and nep-mac
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Published - published in: Economics Letters, 2009, 105 (1), 17-19

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Working Paper: When and how to create a job: The survival of new jobs in Austrian firms (2005)
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