Firm Size Distribution and Employment Fluctuations : Theory and Evidence
(2017) In Research in Economics 71(4). p.690-703- Abstract
- We show that the firm-size distribution is an important determinant of the relationship between an industry's employment and output. A theoretical model predicts that changes in demand for an industry's output have larger effects on employment, resulting from adjustments at both the intensive and extensive margin, in industries characterised by a distribution that has a lower density of large firms. Industry-specific shape parameters of the firm size distributions are estimated using firm-level data from Germany, Sweden and the UK, and used to augment a relationship between industry-level employment and output. The empirical results align with the predictions of the theory.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/5a9c6f7a-d682-485f-a576-8a7b2af9de44
- author
- Görg, Holger ; Henze, Philipp ; Jienwatcharamongkhol, Viroj LU ; Kopasker, Daniel ; Molana, Hassan ; Montagna, Catia and Sjöholm, Fredrik LU
- organization
- publishing date
- 2017-12
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- firm distribution, firm size, employment, fluctuations
- in
- Research in Economics
- volume
- 71
- issue
- 4
- pages
- 690 - 703
- publisher
- Academic Press
- external identifiers
-
- scopus:85029768117
- ISSN
- 1090-9443
- DOI
- 10.1016/j.rie.2017.09.002
- language
- English
- LU publication?
- yes
- id
- 5a9c6f7a-d682-485f-a576-8a7b2af9de44
- date added to LUP
- 2017-10-06 15:45:30
- date last changed
- 2022-03-17 01:26:44
@article{5a9c6f7a-d682-485f-a576-8a7b2af9de44, abstract = {{We show that the firm-size distribution is an important determinant of the relationship between an industry's employment and output. A theoretical model predicts that changes in demand for an industry's output have larger effects on employment, resulting from adjustments at both the intensive and extensive margin, in industries characterised by a distribution that has a lower density of large firms. Industry-specific shape parameters of the firm size distributions are estimated using firm-level data from Germany, Sweden and the UK, and used to augment a relationship between industry-level employment and output. The empirical results align with the predictions of the theory.}}, author = {{Görg, Holger and Henze, Philipp and Jienwatcharamongkhol, Viroj and Kopasker, Daniel and Molana, Hassan and Montagna, Catia and Sjöholm, Fredrik}}, issn = {{1090-9443}}, keywords = {{firm distribution; firm size; employment; fluctuations}}, language = {{eng}}, number = {{4}}, pages = {{690--703}}, publisher = {{Academic Press}}, series = {{Research in Economics}}, title = {{Firm Size Distribution and Employment Fluctuations : Theory and Evidence}}, url = {{http://dx.doi.org/10.1016/j.rie.2017.09.002}}, doi = {{10.1016/j.rie.2017.09.002}}, volume = {{71}}, year = {{2017}}, }