Working Paper Series, Department of Economics, Copenhagen Business School
No 13-2008:
Entrepreneurship, job Creation, and Wage Growth
Nikolaj Malchow-Møller, Bertel Schjerning and Anders Sørensen
Abstract: This paper analyses the importance of entrepreneurs for
job creation and wage growth. Relying on unique data that covers all
plants, firms and individuals in the Danish private sector, we are able to
distil a number of different measures of entrepreneurial plants from the
set of new plants, including measures that much more precisely capture the
"truly new” or "entrepreneurial” plants than in previous studies. Using
these data, we find that while new plants in general account for one third
of the gross job creation in the economy, entrepreneurial plants are
responsible for between 15% and 25% of this, and thus only account for up
to 8% of total gross job creation in the economy. However, entrepreneurial
plants seem to generate more additional jobs than other new plants in the
years following entry. Finally, the jobs generated by entrepreneurial
plants are to a large extent low-wage jobs, as they are not found to
contribute to the growth in average wages. However, this insight varies
across the different types of entrepreneurial plants.
Keywords: na; (follow links to similar papers)
JEL-Codes: J23; L26; (follow links to similar papers)
20 pages, January 1, 2008
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