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Firm Size Distribution and Employment Fluctuations : Theory and Evidence

Görg, Holger; Henze, Philipp; Jienwatcharamongkhol, Viroj LU ; Kopasker, Daniel; Molana, Hassan; Montagna, Catia and Sjöholm, Fredrik LU (2017) In Research in Economics
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:
author
organization
publishing date
type
Contribution to journal
publication status
in press
subject
keywords
firm distribution, firm size, employment, fluctuations
in
Research in Economics
external identifiers
  • scopus:85029768117
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
2018-01-07 12:21:10
@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},
  keyword      = {firm distribution,firm size,employment,fluctuations},
  language     = {eng},
  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},
  year         = {2017},
}