Job Creation and the Intra-distribution Dynamics of the Firm Size Distribution

Peter Huber, Harald Oberhofer and Michael Pfaffermayr

No 395, WIFO Working Papers from WIFO

Abstract: Based on a structural model for initial firm size, survival and firm growth we estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution dynamics of the firm size distribution. We find that policies increasing the life span of firms reduce the exit hazard of young firms, but also reduce the probability to be a Gazelle. An increase in the industry-wide entry rate increases the exit hazards of incumbent firms and has no strong impact on the likelihood of firms to become Gazelles. Increasing market growth, by contrast, decreases the exit hazards for incumbent firms and slightly increases the likelihood of firms to be Gazelles. Finally, an increase in the birth size of firms increases the probability of young firms to be Gazelles with strongest effects for the smallest firms.

Keywords: Firm growth; Gazelles; economic policy; entry size; survival (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-05
New Economics Papers: this item is included in nep-bec, nep-ent, nep-lab and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.wifo.ac.at/wwa/pubid/41910 abstract (text/html)

Related works:
Journal Article: Job creation and the intra-distribution dynamics of the firm size distribution (2014)
Working Paper: Job Creation and the Intra-distribution Dynamics of the Firm Size Distribution (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2011:i:395

Access Statistics for this paper

More papers in WIFO Working Papers from WIFO Contact information at EDIRC.
Bibliographic data for series maintained by Florian Mayr ().