Firm Size Distribution and Employment Fluctuations : Theory and Evidence
(2016) In Working Papers 2016(32).- Abstract
- This paper studies the effect of the firm-size distribution on the relationship between employment and output. We construct a theoretical model, which predicts that changes in demand for industry output have larger effects on employment in industries characterised by a distribution that is more skewed towards smaller 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. Our empirical results align with the predictions of the theory and confirm that the size distribution of firms is an important determinant of the relationship between changes in output and employment.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/8589a95f-2c38-4a63-8ea8-48cc0586037f
- author
- Görg, Holger ; Henze, Philipp ; Jienwatcharamongkhol, Viroj ; Kopasker, Daniel ; Molana, Hassan ; Montagna, Catia and Sjöholm, Fredrik LU
- organization
- publishing date
- 2016-11-18
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- firm distributionx, firm distribution, firm size, employment, fluctuations, E20, E23, L20
- in
- Working Papers
- volume
- 2016
- issue
- 32
- pages
- 35 pages
- publisher
- Department of Economics, Lund University
- language
- English
- LU publication?
- yes
- id
- 8589a95f-2c38-4a63-8ea8-48cc0586037f
- alternative location
- http://swopec.hhs.se/lunewp/abs/lunewp2016_032.htm
- date added to LUP
- 2016-12-28 10:09:48
- date last changed
- 2020-12-04 11:11:29
@misc{8589a95f-2c38-4a63-8ea8-48cc0586037f, abstract = {{This paper studies the effect of the firm-size distribution on the relationship between employment and output. We construct a theoretical model, which predicts that changes in demand for industry output have larger effects on employment in industries characterised by a distribution that is more skewed towards smaller 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. Our empirical results align with the predictions of the theory and confirm that the size distribution of firms is an important determinant of the relationship between changes in output and employment.}}, author = {{Görg, Holger and Henze, Philipp and Jienwatcharamongkhol, Viroj and Kopasker, Daniel and Molana, Hassan and Montagna, Catia and Sjöholm, Fredrik}}, keywords = {{firm distributionx; firm distribution; firm size; employment; fluctuations; E20; E23; L20}}, language = {{eng}}, month = {{11}}, note = {{Working Paper}}, number = {{32}}, publisher = {{Department of Economics, Lund University}}, series = {{Working Papers}}, title = {{Firm Size Distribution and Employment Fluctuations : Theory and Evidence}}, url = {{http://swopec.hhs.se/lunewp/abs/lunewp2016_032.htm}}, volume = {{2016}}, year = {{2016}}, }