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An International Cohort Comparison of Size Effects on Job Growth
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An International Cohort Comparison of Size Effects on Job Growth

Author

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  • Anyadike-Danes, Michael

    (Aston Business School and Enterprise Research Centre, UK)

  • Bjuggren, Carl Magnus

    (Research Institute of Industrial Economics (IFN))

  • Gottschalk, Sandra

    (ZEW, Germany)

  • Hölzl, Werner

    (WIFO, Austria)

  • Johansson, Dan

    (HUI Research)

  • Maliranta, Mika

    (ETLA)

  • Myrann, Anja

    (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

  • Anyadike-Danes, Michael & Bjuggren, Carl Magnus & Gottschalk, Sandra & Hölzl, Werner & Johansson, Dan & Maliranta, Mika & Myrann, Anja, 2014. "An International Cohort Comparison of Size Effects on Job Growth," Working Paper Series 1019, Research Institute of Industrial Economics, revised 30 Nov 2014.
    • Handle: RePEc:hhs:iuiwop:1019
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    Cited by:

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    4. Andrén, Daniela & Mudenda, Lackson Daniel & Pettersson, Nicklas, 2019. "Which firms employ older workers?," Working Papers 2018:14, Örebro University, School of Business.
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    6. Fornaro, Paolo & Luomaranta, Henri, 2015. "Small Versus Large Firms Employment Patterns in Finland: a Comparison," MPRA Paper 66979, University Library of Munich, Germany.
    7. Fornaro, Paolo & Luomaranta, Henri, 2016. "Job Creation and the Role of Dependencies," MPRA Paper 71586, University Library of Munich, Germany.
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    9. Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars, 2018. "Who creates jobs and who creates productivity? Small versus large versus young versus old," Economics Letters, Elsevier, vol. 164(C), pages 50-57.
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    12. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.
    13. N. A. Kravchenko & A. T. Yusupova & A. I. Ivanova & M. A. Yagolnitser, 2024. "Location, Technological Level, and Partnerships as Conditions for Company Growth," Regional Research of Russia, Springer, vol. 14(2), pages 306-315, June.
    14. Díaz-Chao, Ángel & Ficapal-Cusí, Pilar & Torrent-Sellens, Joan, 2017. "Did small and medium enterprises maintain better jobs during the early years of the recession? Job quality multidimensional evidence from Spain," European Management Journal, Elsevier, vol. 35(3), pages 396-413.
    15. Mina, Andrea & Santoleri, Pietro, 2021. "The effect of the Great Recession on the employment growth of young vs. small firms in the Eurozone," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 184-194.
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    17. Habermann, Harald, 2017. "Business takeovers and firm growth: Empirical evidence from a German panel," Working Papers 01/17, Institut für Mittelstandsforschung (IfM) Bonn.
    18. Karlsson, Johan, 2018. "Does regional context matter for family firm employment growth?," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 293-310.
    19. Gaga Loghin & Gabor Andrei & Naaji Antonela & Popescu Marius Constantin, 2016. "Analysis of the Evolution of SMEs in Western Romania Between 2011–2014, Using the Mathematical Modelling," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 94-107, November.
    20. Andersson, Fredrik W. & Johansson, Dan & Karlsson, Johan & Lodefalk, Magnus & Poldahl, Andreas, 2017. "The Characteristics and Performance of Family Firms: Exploiting information on ownership, governance and kinship using total population data," Working Papers 2017:1, Örebro University, School of Business.
    21. Johan Karlsson, 2021. "Firm size and growth barriers: a data-driven approach," Small Business Economics, Springer, vol. 57(3), pages 1319-1338, October.
    22. Andrew Burke & Marc Cowling, 2020. "The relationship between freelance workforce intensity, business performance and job creation," Small Business Economics, Springer, vol. 55(2), pages 399-413, August.
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    24. Alex Coad & Martin Andersson & Magnus Henrekson & Sarah Jack & Mikael Stenkula & Karin Thorburn & Karl Wennberg & Ivo Zander, 2022. "John Haltiwanger: recipient of the 2020 Global Award for Entrepreneurship Research," Small Business Economics, Springer, vol. 58(1), pages 15-25, January.

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    More about this item

    Keywords

    Birth cohort; Firm age; Firm size; Firm survival; Firm growth;
    All these keywords.

    JEL classification:

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

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