An international cohort comparison of size effects on job growth


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.

Publication DOI:
Divisions: Aston Business School
Aston Business School > Economics, Finance & Entrepreneurship
Additional Information: The final publication is available at Springer via Funding: Jan Wallander and Tom Hedelius Research Foundation as well as from the Marianne and Marcus Wallenberg Foundation.
Uncontrolled Keywords: birth cohort,distributed micro-data analysis,firm age,firm growth,firm size,firm survival,Economics and Econometrics,Business, Management and Accounting(all)
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://link.spr ... 1187-014-9622-0 (Publisher URL)
PURE Output Type: Article
Published Date: 2015-04
Published Online Date: 2014-12-17
Authors: Anyadike-Danes, Michael ( 0000-0001-5175-082X)
Bjuggren, Carl-Magnus
Gottschalk, Sandra
Hölzl, Werner
Johansson, Dan
Maliranta, Mika
Myrann, Anja



Version: Accepted Version

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