1. SMEs, Age, and Jobs : A Review of the Literature, Metrics, and Evidence
- Author
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Aga, Gemechu, Francis, David C., and Rodriguez Meza, Jorge
- Subjects
FIRM DYNAMICS ,DOWNWARD BIAS ,INFORMATION ,FARM EMPLOYMENT ,SIZE OF FIRMS ,ECONOMIC GROWTH ,EMPLOYERS ,CO-OPERATIVES ,EMPLOYMENT GROWTH ,TRAINING PROGRAMS ,JOB ,JOB CREATION RATES ,EMPLOYMENT POTENTIAL ,DRIVERS ,FIRM SIZE ,EMPLOYMENT ,MANUFACTURERS ,MANUFACTURING ESTABLISHMENTS ,LENDING ,INCOME ,PRODUCTIVITY ,STATE-OWNED ENTERPRISES ,JOB DESTRUCTION RATES ,JOB GENERATION ,LABOR PRODUCTIVITY ,WORKERS ,EXPANSION ,JOBS ,PLANT SIZE ,NET JOB CREATION ,FIRM EXIT ,FIRM ,MEDIUM ENTERPRISES ,SMALL ENTERPRISE ,SERVICE SECTOR ,ORGANIZATIONS ,FIRM” LEVEL ,FIRMS ,TOTAL LABOR FORCE ,TOTAL EMPLOYMENT ,DEVELOPMENT ECONOMICS ,WORKER ,MARKETS ,BUSINESS CYCLE ,LABOUR REGULATION ,JOB LOSS ,SMALL BUSINESSES ,JOB CREATION RATE ,PREVIOUS STUDIES ,DOMINANT EMPLOYERS ,AGE GROUPS ,PRODUCTION ,ENTERPRISES ,SMALL BUSINESS ,THEORY ,JOB DESTRUCTION ,EMPLOYMENT DYNAMICS ,MARKET ,PRODUCTIVE FIRMS ,EMPLOYMENT SHARE ,OWNERSHIP STRUCTURE ,CONTRACTING ,INNOVATION ,LABOR STATISTICS ,ECONOMIC THEORY ,PRIVATE FIRMS ,EMPLOYMENT SIZE ,EMPLOYEE ,LABOUR ,CROSS- SECTIONAL DATA ,SMALL FIRM ,BUSINESS ENVIRONMENT ,ACCOUNTING ,PREVIOUS RESULTS ,AVERAGE EMPLOYMENT SIZE ,VALUE ,SECURITY ,RISK ,ENTERPRISE ,SME ,POLICIES ,SMALL ENTERPRISES ,EMPLOYMENT LEVEL ,NET EMPLOYMENT ,SUPPLIERS ,EFFECTS ,FIRM ENTRY ,TURNOVER ,EMPLOYEES ,PRIVATE SECTOR ,JOB CHURNING ,EMPLOYMENT GROWTH RATE ,EMPLOYMENT CREATION ,EFFICIENCY ,SURVIVAL RATE ,TRAINING ,MERGERS ,FIRM SURVEY ,SHOP ,EMPLOYMENT LEVELS ,FIRM LEVEL ,JOB FLOWS ,LABOR ,ECONOMICS ,AGE CATEGORIES ,JOB CREATION ,MOTIVATION ,SMALL FIRMS ,LABOR FORCE ,FIRM GROWTH ,ENTREPRENEURSHIP ,JOB DESTRUCTION RATE ,NON-FARM EMPLOYMENT - Abstract
The subject of which firms are the key employers—and which of these create or destroy jobs at a faster rate—is eminently important for academics and policy makers. The relative importance of small versus large firms and old versus young firms has in particular been extensively debated and studied. Nevertheless, the results often hinge on the questions that are asked. Moreover, the categorical definitions used to define firm size and age, and the nature and coverage of the data used have important effects. This paper lays out the relevant definitions and metrics that are central to the debate, reviewing the main findings to date on the subject (with particular emphasis on results in developing economies). The paper adds updated results for 117 developing economies using the World Bank’s Enterprise Survey Data, finding that (i) small and medium enterprises and older establishments are the dominant employers in the nonagricultural private sector labor force in developing economies, and (ii) net job creation is negatively correlated with establishment age and, although the effect of size is also negative, its significance is sensitive to the definition and methods used.
- Published
- 2015