1. Firm age, size, and firm-level job creation and destruction.
- Author
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Liu, Yang
- Subjects
- *
BUSINESS cycles , *BUSINESS size , *PANEL analysis , *EMPLOYMENT , *BUSINESS enterprises - Abstract
• This study applies novel firm-level dynamics of job creation and destruction. • Similar effects of age and size on net growth are caused by their different effects on job creation and destruction. • The age effect exists for young and mature firms. • The study further examines particular firm groups and business cycles. • Policy and managerial issues differ between a firm's expansion and aging. 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. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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