Quotation Huber, Peter, Oberhofer, Harald, Pfaffermayr, Michael. 2017. Who creates jobs? Econometric modeling and evidence for Austrian firm level data. European Economic Review 91 (1), 57-71.




This paper provides evidence on the role of firm size and firm age for firm level net job creation in the Austrian economy between 1993 and 2013 and during the Great Recession. We propose a new estimation strategy based on a two-part model to decompose behavioral differences between exiting and surviving firms. Young firms contribute most to net job creation, despite high relative exit rates, due to high growth rates among young surviving firms. Small firms have similar job creation rates conditional on survival as large firms. Small firms' contribution to job creation is, however, smaller due to higher exit rates. The up-or-out dynamics characterizing less regulated economies such as the US also apply to the more regulated Austrian economy. During the Great Recession both the relative net job creation rate conditional on survival and the relative survival probability of young firms decreased. The relative contribution of small firms to net job creation, by contrast, increased due to increased relative job creation rates of small firms conditional on survival.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Economic Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-A, WH-B
Language English
Title Who creates jobs? Econometric modeling and evidence for Austrian firm level data
Volume 91
Number 1
Year 2017
Page from 57
Page to 71
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.euroecorev.2016.09.008


Oberhofer, Harald (Details)
Huber, Peter (WIFO, Austria)
Pfaffermayr, Michael (Universität Innsbruck, Austria)
Department of Economics (Badinger) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5323 Econometrics (Details)
5325 Political economics (Details)
5344 Foreign trade (Details)
5370 Industrial economics (Details)
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