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A cross-country analysis of start-up employment dynamics

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  • Calvino, Flavio
  • Criscuolo, Chiara
  • Menon, Carlo

Abstract

This article carries out a detailed descriptive analysis of employment dynamics of new firms, using comparable and highly representative data for 19 countries. It does so by using a novel analytical decomposition of the contribution of new firms to job creation, which allows to separately focus on different margins. In particular, the contribution of new firms to job creation can be expressed as a combination of four different elements: start-up ratio; survival share; average size of firms at entry; and average post-entry growth rate of survivors. This comprehensive characterization of entrants’ employment dynamics points to regularities and differences in business dynamism across countries, and can be used as an important diagnostic tool by policy makers.

Suggested Citation

  • Calvino, Flavio & Criscuolo, Chiara & Menon, Carlo, 2018. "A cross-country analysis of start-up employment dynamics," LSE Research Online Documents on Economics 90461, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90461
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    Cited by:

    1. Flavio Calvino & Daniele Giachini & Mattia Guerini, 2022. "The age distribution of business firms," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 205-245, January.
    2. Alex Coad & Julian S. Frankish & Albert N. Link, 2020. "The Economic Contribution of a Cohort of New Firms Over Time," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 519-536, November.

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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