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

Huber, Peter and Oberhofer, Harald and Pfaffermayr, Michael (2015) Who Creates Jobs? Econometric Modeling and Evidence for Austrian Firm Level Data. Department of Economics Working Paper Series, 205. WU Vienna University of Economics and Business, Vienna.


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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.(authors' abstract)

Item Type: Paper
Keywords: Net job creation / firm size / firm age / one-part versus two-part models / Austrian economy / Great Recession
Classification Codes: JEL C18, C53, D22, E24, L25, L26, M13
Divisions: Departments > Volkswirtschaft
Depositing User: Claudia Tering-Raunig
Date Deposited: 23 Sep 2015 15:02
Last Modified: 22 Oct 2019 00:41
URI: https://epub.wu.ac.at/id/eprint/4650


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