Who Creates more jobs: small vs. large firms, young vs. old firms
- Who Creates more jobs: small vs. large firms, young vs. old firms
- ALI, Mesfin Abraham
- Issue Date
- KDI School of public policy and management
- The role of size and age of firms in the process of job creation have well been analyzed
empirically. But, this question have not been formally anlyzed in the context of Ethiopia.In
this study, by using 15 years longituidinal data on individual establihsments in the
manufacturing sector of Ethiopia, the rates of job creation and destruction are compared
and analyzed for different firm size or age classes and across industries. The results of the
statistical and econometric analysis suggest that smaller sized and younged aged firms are
important sources of new job creation and job destruction as well. But, the results of the
analysis on net employment creation suggested that, the effect of firm size on net
employment creation is sensitive to the measure of size used.
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