The age distribution of business firms

Abstract We investigate upon the shape and determinants of age distribution business firms. By employing a novel dataset covering population French businesses, we highlight that geometric law provides reasonable approximation for distribution. However, relevant systematic deviations sectoral heterogeneity appear. develop stochastic model firm dynamics to explain mechanisms behind this evidence relate them dynamism. Results reveal long-term decline in entry rates lower survival probabilities young Our findings bear important implications aggregate outcomes, notably employment growth.