Who Creates Jobs? Econometric Modeling and Evidence for Austrian Firm Level Data

Peter Huber, Harald Oberhofer and Michael Pfaffermayr

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

Abstract: This paper offers an empirical analysis of net job creation patterns at the firm level for the Austrian economy between 1993 and 2013 focusing on the impact of firm size and age. We propose a new estimation strategy based on a two-part model. This allows to identify the structural parameters of interest and to decompose behavioral differences between exiting and surviving firms. Our findings suggest that conditional on survival, young Austrian firms experience the largest net job creation rates. Differences in firm size are not able to explain variation in net job creation rates among the group of continuing enterprises. Job destruction induced by market exit, however, is largest among the young and small firms with this effect being even more pronounced during the times of the Great Recession. In order to formulate sensible policy recommendations, a separate treatment of continuing versus exiting firms as proposed by the new two-part model estimation approach seems crucial.

Keywords: Net job creation; firm size; firm age; one-part versus two-part models; Austrian economy; Great Recession (search for similar items in EconPapers)
JEL-codes: C18 C53 D22 E24 L25 L26 M13 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-ent, nep-mac and nep-sbm
Note: PDF Document
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://epub.wu.ac.at/4650/1/wp205.pdf (application/pdf)

Related works:
Journal Article: Who creates jobs? Econometric modeling and evidence for Austrian firm level data (2017)
Working Paper: Who Creates Jobs? Econometric Modeling and Evidence for Austrian Firm Level Data (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwwuw:wuwp205

Access Statistics for this paper

More papers in Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Department of Economics ().