Entrepreneurship, Job Creation, and Wage Growth
Publikation: Working paper › Forskning
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Entrepreneurship, Job Creation, and Wage Growth. / Malchow-Møller, Nikolaj; Schjerning, Bertel; Sørensen, Anders.
Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen, 2009.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Entrepreneurship, Job Creation, and Wage Growth
AU - Malchow-Møller, Nikolaj
AU - Schjerning, Bertel
AU - Sørensen, Anders
N1 - JEL-classification: L26, J21, J31
PY - 2009
Y1 - 2009
N2 - This paper analyses the importance of entrepreneurs for job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments - subsets which allow us to more precisely capture the "truly new" or "entrepreneurial" establishments than in previous studies. Using these data, we find that while new establishments in general account for one third of the gross job creation in the economy, entrepreneurial establishments are responsible for around 25% of this, and thus only account for about 8% of total gross job creation in the economy. However, entrepreneurial establishments seem to generate more additional jobs than other new establishments in the years following entry. Finally, the jobs generated by entrepreneurial establishments are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages.
AB - This paper analyses the importance of entrepreneurs for job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments - subsets which allow us to more precisely capture the "truly new" or "entrepreneurial" establishments than in previous studies. Using these data, we find that while new establishments in general account for one third of the gross job creation in the economy, entrepreneurial establishments are responsible for around 25% of this, and thus only account for about 8% of total gross job creation in the economy. However, entrepreneurial establishments seem to generate more additional jobs than other new establishments in the years following entry. Finally, the jobs generated by entrepreneurial establishments are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages.
KW - Faculty of Social Sciences
KW - entrepreneurial establishments
M3 - Working paper
BT - Entrepreneurship, Job Creation, and Wage Growth
PB - Centre for Applied Microeconometrics. Department of Economics, University of Copenhagen
ER -
ID: 9769436