Who creates jobs? Econometric modeling and evidence for Austrian firm level data

Huber, Peter; Oberhofer, Harald; Pfaffermayr, Michael

doi:10.1016/j.euroecorev.2016.09.008

Cited by 20 publications

(25 citation statements)

References 34 publications

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“…This relationship weakens for continuing firms. Huber et al (2017) and Rijkers et al (2014) find a stronger relationship for all firms, but again less so for continuing firms. Lawless (2014) for Ireland finds that there is no systematic effect of size, once she excludes the smallest firms.…”

Section: Policy Debate and Literature Reviewmentioning

confidence: 87%

“…Birch's work has subsequently been criticised for its failure to account for attrition and its ability to differentiate between gross and net flows. Haltiwanger et al (2013) using US Census Bureau data and Huber et al (2017) using Austrian data provide the recent leading studies into net employment growth that challenge the view on small firm employment growth. Both these studies use a current average of employment growth as the dependent variable, rather than logarithmic change to overcome regression to mean effects and enable an integrated approach to entry and exit.…”

Section: Policy Debate and Literature Reviewmentioning

confidence: 99%

“…Both these studies use a current average of employment growth as the dependent variable, rather than logarithmic change to overcome regression to mean effects and enable an integrated approach to entry and exit. They both employ a saturated non-parametric OLS approach, whilst Huber et al (2017) additionally use their own two-step approach, which produces similar findings. These authors find that once they control for age, small firm's average growth is lower than that of larger firms, counter to the perception on which the reliefs are based.…”

Section: Policy Debate and Literature Reviewmentioning

confidence: 99%

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Small business property tax reductions and job growth

Gobey

Matikonis

2019

Small Bus Econ

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The incomplete devolution of taxation powers to English Local Government has been constrained by central government's doubling of reductions in property taxes for small firms. The aim is to stimulate local growth, but we question the economic logic. We analyse reductions in place since 2005, with a newly linked dataset for all firms that incorporate administrative data down to local units. We find the reductions do not overcome supposed market failures, do not stimulate job growth and once we control for firm age, that the targeted small firms do not produce extra employment. Young firms and larger firms have better growth rates, but there is no systematic size effect. We conclude that the tax reductions fail because they do not account for tax capitalisation (i.e. incidence shifts from firms to property owners), the basic characteristics of the average small firm or develop a clear mechanism for change among heterogeneous economic actors.

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Section: Policy Debate and Literature Reviewmentioning

confidence: 87%

Section: Policy Debate and Literature Reviewmentioning

confidence: 99%

Section: Policy Debate and Literature Reviewmentioning

confidence: 99%

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Small business property tax reductions and job growth

Gobey

Matikonis

2019

Small Bus Econ

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“…Smaller firms are less likely to survive, but exhibit higher growth rates compared to larger firms (Evans, 1987;Dunne andHughes, 1994 or Haltiwanger et al, 2013). For this reason, we follow Huber et al (2017) and Hölzl (2013) who suggest to model firm growth rates by two distinct equations -one for the exit decision and a second for firm growth of surviving firms. The two-part model further allows for a decomposition of the individual contributions of firm exit and survival to the persistence of growth for different sets of high-growth firms.…”

Section: Methodsmentioning

confidence: 99%

“…In order to have a first look at the dynamics of high-growth firms over time, we follow Capasso et al (2013), and Hölzl (2013) and report the estimated transition probabilities that a firm in a given growth category in one period will be located in that or another growth category in the next period. We then model future growth rates for high-growth firms and control firms by means of a two-part model similar to Huber et al (2017) with separate equations for survival and exit (probit regressions) as well as for growth of survivors and growth of exits (linear regressions). We finally use results from the two-part model as input for the decomposition of aggregate growth effects.…”

Section: Introductionmentioning

confidence: 99%

Who Persistently Creates Jobs? Absolute versus Relative High-Growth Firms

Erhardt

2017

SSRN Journal

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This paper examines the economic contribution of high-growth firms after their high-growth event.While the central role of high-growth firms for job creation is well-established, little is known about their dynamic development in coming periods. We address this question for the first time by comparing absolute with relative growth measures and use data on private firms in Bulgaria for three consecutive 3-year periods (2001-2004, 2004-2007, and 2007-2010). Next to calculating transition probability matrices to investigate growth in employees in coming periods, we model future employment growth by means of a two-part model with separate equations for the probability of survival and exit as well as for growth of survivors and growth of exits. The decomposition of aggregate growth effects shows that it is central for outcomes whether growth is measured in absolute or relative terms. High-growth firms defined according to an absolute measure show the biggest potential for job creation in coming periods while those measured in relative terms without size threshold tend to be outperformed by other firms. In that regard, both public support programs for high-growth firms as well as researchers should refrain more from exclusively applying relative growth measures.

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Survival and growth of organic farms over the long‐run

Brady

Granatstein

Kirby

2023

J of Agr & App Econ Assoc

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We analyze a detailed record of organic farm entry, exit, and growth for Washington State covering nearly all organic farms dating back to the beginning of the organic industry to better understand the relationship between farm characteristics, market conditions, and farm success. We find that organic farms are most likely to exit in the first 2 years after entering. Changes in industry scale and concentration are driven by exit and size adjustment decisions made by larger farms, whereas small farms are less sensitive to market conditions and have higher exit rates and lower growth rates.

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Who creates jobs? Econometric modeling and evidence for Austrian firm level data

Cited by 20 publications

References 34 publications

Small business property tax reductions and job growth

Small business property tax reductions and job growth

Who Persistently Creates Jobs? Absolute versus Relative High-Growth Firms

Survival and growth of organic farms over the long‐run

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