The effect of the Great Recession on the employment growth of young vs. small firms in the Eurozone

This paper examines the uneven impact of Great Recession on firm-level employment growth across firm size and age classes. Based data from ten Eurozone countries, we show that, notwithstanding negative crisis, young firms were most dynamic group prime contributors to net job creation even during recession. However, conditional survival, experienced a sharp drop in their rates, whereas small mostly unaffected. By using industry-level measures external financial dependence, then how frictions driver rates slowdown firms.