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Firm age, size, and firm-level job creation and destruction

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  • Liu, Yang

Abstract

This study examines the effects of firm age and size on job creation and destruction of existing firms, using large-scale panel data from Japan. It contributes to the literature by examining the effects on firm-level job creation and destruction, differing from previous studies which focused on net employment growth (i.e., the difference between job creation and destruction for each firm) or job creation/ destruction on aggregated level (calculated by aggregating net employment increases/decreases of firms or plants). Results show that for an individual firm, age has significantly negative effects on the firm's job creation and destruction; however, size has a significantly negative effect on the firm's job creation but a significantly positive effect on its job destruction. Particular firm groups and different business cycles are further examined. The findings suggest that policy and managerial issues differ between a firm's expansion and aging.

Suggested Citation

  • Liu, Yang, 2024. "Firm age, size, and firm-level job creation and destruction," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 471-480.
    • Handle: RePEc:eee:streco:v:70:y:2024:i:c:p:471-480
    DOI: 10.1016/j.strueco.2024.05.006
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    More about this item

    Keywords

    Firm age; Firm size; Employment dynamics; Job creation; Job destruction;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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