Determinants of Job Creation in Eleven New EU Member States : Evidence from Firm Level Data

This paper builds on the analysis of job creation developed in World Bank (2013) to provide an empirical investigation of the industry and firm-specific determinants of the job creation process in eleven new European Union (EU11) economies. It relies on the Amadeus dataset of firms during 2002-2009. The main results indicate that during the years prior to the global financial crisis, traditional industries were crucial for the net creation of jobs in EU11. However, traditional industries were the ones most severely affected by the financial crisis. By contrast, services firms were less vulnerable to the economic downturn. At the firm level, small and young firms registered the highest employment growth rates. The empirical results also indicate that more productive firms tended to be less vulnerable to economic downturns. Moreover, the results demonstrate that the perceived quality of the business climate by the EU11 enterprises is correlated with not only the firms' employment growth, but also their productivity. In the post-crisis period, poor business restrictions were negatively associated with the creation of jobs. All these findings hold for the group of high-growth firms that disproportionately accounted for the creation of new jobs in the EU11 economies.

Bibliographic Details

Main Authors:	Vincelette, Gallina A., Oberhofer, Harald
Language:	English en_US
Published:	World Bank, Washington, DC 2013-07
Subjects:	ACCOUNTING, BUSINESS ENVIRONMENT, BUSINESS ENVIRONMENTS, CDF, CENTRALLY PLANNED ECONOMIES, COMPETITORS, CORPORATE GROWTH, CORPORATIONS, CREATING JOBS, CRISES, DEVELOPED COUNTRIES, DRIVERS, ECONOMIC ACTIVITY, ECONOMIC DOWNTURNS, ECONOMIC GROWTH, ECONOMICS, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES, EMPLOYMENT, EMPLOYMENT EFFECTS, EMPLOYMENT GROWTH, EMPLOYMENT GROWTH RATE, EMPLOYMENT GROWTH RATES, EMPLOYMENT PERFORMANCE, EMPLOYMENT RATES, ENTREPRENEURS, ENTREPRENEURSHIP, ENTRY BARRIERS, ESTIMATED PARAMETERS, EXPANSION, FINANCIAL RESOURCES, FIRM ENTRY, FIRM EXIT, FIRM GROWTH, FIRM LEVEL, FIRM PRODUCTIVITY, FIRM SIZE, FISHING, FISHING FIRMS, FOREIGN DIRECT INVESTMENT, INCOME, INDUSTRY CHARACTERISTICS, INNOVATION, INTERMEDIATE INPUTS, JOB CREATION, JOB CREATION RATE, JOB CREATION RATES, JOB DESTRUCTION, JOB DESTRUCTION RATE, JOB LOSS, JOB LOSSES, JOBLESS GROWTH, JOBS, LABOR DEMAND, LABOR MARKETS, LABOR REGULATION, LABOR REGULATIONS, LABOR RESOURCES, LICENSING, MANUFACTURING INDUSTRIES, MARGINAL FIRM, MARKET ENTRY, MULTINATIONAL, NET JOB CREATION, POLICY MAKERS, PREVIOUS WORK, PROBIT REGRESSIONS, PRODUCTION FUNCTIONS, PRODUCTIVE FIRMS, PRODUCTIVITY GROWTH, PRODUCTIVITY LEVELS, PUBLIC PROCUREMENT PROCEDURES, PUBLIC SERVICES, RETAIL TRADE, SERVICE INDUSTRIES, SERVICE PROVIDERS, SERVICE SECTOR, SMALL BUSINESS, SMALL BUSINESSES, SMALL FIRM, SMALL FIRMS, TAX SYSTEMS, TAXATION, TOTAL FACTOR PRODUCTIVITY, UNEMPLOYMENT, UNEMPLOYMENT RATES, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2013/07/18015716/determinants-job-creation-eleven-new-eu-member-states-evidence-firm-level-data https://hdl.handle.net/10986/15891
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