2015

An International Cohort Comparison of Size Effects on Job Growth

Reprint No. 2015:17

Author(s): Michael Anyadike-Danes, Carl Magnus Bjuggren, Sandra Gottschalk, Werner Hölzl, Dan Johansson, Mika Maliranta and Anja Myrann Year: 2015 Title: Small Business Economics Volume (No.): 44 (4) Pages: 821–844
Online article (restrictions may apply)
Preliminary version


The contribution of different-sized businesses to job creation continues to attract policymakers’ attention; however, it has recently been recognised 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.


Reference:
Anyadike-Danes, Michael, Carl Magnus Bjuggren, Sandra Gottschalk, Werner Hölzl, Dan Johansson, Mika Maliranta and Anja Myrann (2015), "An International Cohort Comparison of Size Effects on Job Growth". Small Business Economics 44(4), 821–844.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

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The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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