Who Creates Stable Jobs? Evidence from Brazil

68 Pages Posted: 17 Dec 2018

See all articles by Peter Brummund

Peter Brummund

University of Alabama - Department of Economics, Finance and Legal Studies

Laura Connolly

University of Alabama

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Abstract

Recent research shows that start-ups are important for job creation, but these firms are also inherently volatile. We use linked employer-employee data to examine the relative importance of firm age and firm size for job creation and destruction in Brazil. Firm age is a more important determinant of job creation in Brazil than firm size; young firms and start-ups create a relatively high number of jobs. However, young firms are also more likely to exit the market and have higher levels of employment volatility. We, therefore, condition the job creation analysis on job stability. Young firms and large firms create relatively more stable jobs in Brazil.

Keywords: job creation, job stability, Brazilian labor market

JEL Classification: L25, J23, J63

Suggested Citation

Brummund, Peter and Connolly, Laura, Who Creates Stable Jobs? Evidence from Brazil. IZA Discussion Paper No. 12009. Available at SSRN: https://ssrn.com/abstract=3301782

Peter Brummund (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

Laura Connolly

University of Alabama

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