Firm Growth in Europe: An Overview Based on the CompNet Labour Module

73 Pages Posted: 24 Apr 2017

See all articles by Cristina Fernández

Cristina Fernández

Banco de España

Roberto Garcia

Banco Sabadell, S.A.

Paloma Lopez-Garcia

European Central Bank (ECB)

Benedicta Marzinotto

Università degli Studi di Udine - Department of Economics

Roberta Serafini

European Central Bank (ECB)

Juuso Vanhala

Bank of Finland

Ladislav Wintr

Banque Centrale du Luxembourg

Date Written: April 21, 2017

Abstract

This paper illustrates the main features of the Labour Module of the CompNet dataset which provides indicators of firm growth over the period 1995-2012 across 17 EU (13 euro area) countries and 9 macro-sectors. It also includes information on a large set of micro-aggregated characteristics of firms growing at different speed such as their financial position and labour and total factor productivity. The paper shows that during the Great Recession the share of shrinking firms sharply increased in countries under stress, while firm growth slowed down in non-stressed countries. In the former, the construction sector suffered the most, while in the latter manufacturing and services related to transportation and storage were mainly affected, possibly as a result of the trade collapse. While we find that, all else equal, more productive firms had a higher probability of growing, the process of productivity-enhancing reallocation was muted during the Great Recession.

Keywords: firm growth, micro-aggregated data, cross-country analysis

JEL Classification: J23, L11, L25

Suggested Citation

Fernández, Cristina and Garcia, Roberto and Lopez-Garcia, Paloma and Marzinotto, Benedicta and Serafini, Roberta and Vanhala, Juuso and Wintr, Ladislav, Firm Growth in Europe: An Overview Based on the CompNet Labour Module (April 21, 2017). ECB Working Paper No. 2048. Available at SSRN: https://ssrn.com/abstract=2957351

Cristina Fernández (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Roberto Garcia

Banco Sabadell, S.A. ( email )

Sabadell
Spain

Paloma Lopez-Garcia

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Benedicta Marzinotto

Università degli Studi di Udine - Department of Economics ( email )

Via Tomadini 30
33100 Udine
Italy

Roberta Serafini

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Juuso Vanhala

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Ladislav Wintr

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

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