Arbeitspapier

Firm Size Distribution and Employment Fluctuations: Theory and Evidence

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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 10371

Klassifikation
Wirtschaft
Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data)
Macroeconomics: Production
Firm Objectives, Organization, and Behavior: General
Thema
firm distribution
firm size
employment
fluctuations

Ereignis
Geistige Schöpfung
(wer)
Görg, Holger
Henze, Philipp
Jienwatcharamongkhol, Viroj
Kopasker, Daniel
Molana, Hassan
Montagna, Catia
Sjöholm, Fredrik
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2016

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Görg, Holger
  • Henze, Philipp
  • Jienwatcharamongkhol, Viroj
  • Kopasker, Daniel
  • Molana, Hassan
  • Montagna, Catia
  • Sjöholm, Fredrik
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2016

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