Görg, H., Henze, P., Jienwatcharamongkhol, V., Kopasker, D. , Molana, H., Montagna, C. and Sjöholm, F. (2017) Firm size distribution and employment fluctuations: theory and evidence. Research in Economics, 71(4), pp. 690-703. (doi: 10.1016/j.rie.2017.09.002)
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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.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Kopasker, Dr Daniel |
| Authors: | Görg, H., Henze, P., Jienwatcharamongkhol, V., Kopasker, D., Molana, H., Montagna, C., and Sjöholm, F. |
| College/School: | College of Medical Veterinary and Life Sciences > School of Health & Wellbeing > MRC/CSO SPHSU |
| Journal Name: | Research in Economics |
| Publisher: | Elsevier |
| ISSN: | 1090-9443 |
| ISSN (Online): | 1090-9451 |
| Published Online: | 18 September 2017 |
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