Job Creation and Destruction: New Evidence on the Role of Small Versus Young Firms In Korea

15 Pages Posted: 5 May 2017

See all articles by Janghee Cho

Janghee Cho

Sogang University

Hyunbae Chun

Sogang University - Department of Economics

Hongjun Kim

Sogang University

Yoon Soo Lee

Sogang University

Date Written: June 2017

Abstract

Using the Census on Establishments data in Korea, the present study revisits the role of firm age and size to explain aggregate employment dynamics. We confirm the finding of Haltiwanger et al. that no systematic inverse relationship exists between net job growth and firm size once firm age is controlled for. We find that small businesses are driving forces of aggregate employment growth but that such high growth is mostly driven by the entry of very small firms, which is offset by job destructions of a similar magnitude. Moreover, entrepreneurial activity occurs among very small firms, whereas large start‐ups are rarely observed.

Suggested Citation

Cho, Janghee and Chun, Hyunbae and Kim, Hongjun and Lee, Yoon Soo, Job Creation and Destruction: New Evidence on the Role of Small Versus Young Firms In Korea (June 2017). The Japanese Economic Review, Vol. 68, Issue 2, pp. 173-187, 2017. Available at SSRN: https://ssrn.com/abstract=2962725 or http://dx.doi.org/10.1111/jere.12133

Janghee Cho (Contact Author)

Sogang University ( email )

Seoul 121-742
Korea, Republic of (South Korea)

Hyunbae Chun

Sogang University - Department of Economics ( email )

Seoul, 121-742
Korea, Republic of (South Korea)
+82-2-705-8515 (Phone)
+82-2-704-8599 (Fax)

HOME PAGE: http://hompi.sogang.ac.kr/hchun/

Hongjun Kim

Sogang University

Seoul 121-742
Korea, Republic of (South Korea)

Yoon Soo Lee

Sogang University ( email )

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