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

Author

Listed:
  • Michael Anyadike-Danes

    (Aston Business School)

  • Carl-Magnus Bjuggren

    (Linköping University, Sweden)

  • Sandra Gottschalk

    (The Centre for European Economic Research (ZEW) in Mannheim)

  • Werner Hölzl

    (WIFO, Austria)

  • Dan Johansson

    (Hui Research)

  • Mika Maliranta

    (The Research Institute of the Finnish Economy (ETLA))

  • Anja Myrann

    (Ragnar Frisch Centre for Economic Research, Norway)

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 size 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. A closer analysis reveals that the initial size distribution and survival rates do not seem to explain job growth differences between countries, rather it is a small number of rapidly growing firms that are driving this result.

Suggested Citation

  • Michael Anyadike-Danes & Carl-Magnus Bjuggren & Sandra Gottschalk & Werner Hölzl & Dan Johansson & Mika Maliranta & Anja Myrann, 2013. "Accounting for Job Growth: Disentangling Size and Age Effects in an International Cohort Comparison," Research Papers 0002, Enterprise Research Centre.
    • Handle: RePEc:enr:rpaper:0002
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    References listed on IDEAS

    as
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    Cited by:

    1. Chiara Criscuolo & Peter N. Gal & Carlo Menon, 2017. "Do micro start-ups fuel job creation? Cross-country evidence from the DynEmp Express database," Small Business Economics, Springer, vol. 48(2), pages 393-412, February.
    2. Andrew A. Toole & Dirk Czarnitzki & Christian Rammer, 2015. "University research alliances, absorptive capacity, and the contribution of startups to employment growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(5), pages 532-549, July.
    3. Renata Dana Nițu-Antonie & Emőke-Szidónia Feder & Valentin Partenie Munteanu, 2017. "Macroeconomic Effects of Entrepreneurship from an International Perspective," Sustainability, MDPI, vol. 9(7), pages 1-21, July.
    4. Criscuolo, Chiara & Gal, Peter N. & Menon, Carlo, 2014. "The dynamics of employment growth: new evidence from 18 countries," LSE Research Online Documents on Economics 60286, London School of Economics and Political Science, LSE Library.
    5. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.

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    More about this item

    Keywords

    birth cohort; firm age; firm size; firm survival; firm growth;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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