Who Creates Stable Jobs? Evidence from Brazil
نویسندگان
چکیده
A popular perception of the US economy is that small businesses create most of the private sector jobs. However, recent work showed that firm age is a more important determinant of job creation than firm size (Haltiwanger, Jarmin, & Miranda, 2013). The authors show that young firms and start-ups contribute more to job creation in the US economy than do small firms. However, young firms and start-ups are inherently volatile, potentially leading to high employment turnover and lower levels of job stability. In this paper, we first replicate the Haltiwanger, Jarmin, and Miranda analysis using data from Brazil, and then compare the results to the US. Consistent with the results for the US, we find that firm age is a more important determinant of job growth in Brazil than is firm size. We then condition the job creation analysis on stable jobs to determine what types of firms are creating stable jobs in Brazil. We find that young firms and large firms create the most stable jobs in Brazil. JEL classifications: L25, J23, J325
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