Entrepreneurship, job creation and wage growth

By Nikolaj Malchow-møller, Bertel Schjerning, A. Sørensen. 2011

123 citations recorded by the source corpus.

This paper analyses the importance of entrepreneurs in terms of job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments—subsets which allow us to more precisely capture the “truly new” or “entrepreneurial” establishments than has been possible in previous studies. Using these data, we find that while new establishments in general account for one-third of the gross job creation in the economy, entrepreneurial establishments are responsible for around 25% of this, and thus only account for about 8% of total gross job creation in the economy. However, entrepreneurial establishments seem to generate more additional jobs than other new establishments in the years following entry. Finally, the jobs generated by entrepreneurial establishments are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages.

Subfields: Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/11a4ce13148cb55e5e83825cc762c8157ff2a490

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Management of Technology and Innovation

Citations in the corpus

A portfolio perspective on entrepreneurship and economic development (2015, unknown): “However, it is argued that the managed growth and high-growth firms create a disproportionate amount of job and wealth creation (Birch 1987; Malchow-Moller et al. 2011).”
Entrepreneurship and the Business Cycle (2012, background): “16 For example, in a study covering the establishment of all private sector firms in Denmark, Malchow-Møller et al. (2009) estimate that 8% of total gross job creation in the economy is traceable to entrepreneurial firms.”
Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries (2014, unknown): “Ultimately, new firms may substantially contribute to job creation provided that the net effect of new entrants brings about overall market growth (Malchow-Møller, Schjerning, and Sørensen 2011).”
Social entrepreneurship and entrepreneurial ecosystems: Complementary or disjoint phenomena? (2017, background): “attracting skilled human capital from other regions, injecting innovation into their communities, and, in many cases, rejuvenating depressed local or regional economies (Audretsch et al., 2006; Malchow-Møller et al., 2011).”
Regional competitiveness, university spillovers, and entrepreneurial activity (2011, unknown): “These beneficial effects on fostering entrepreneurship as the predominant agent of innovation (see Acs and Plummer 2005; Malchow-Møller et al. 2011; Müller 2006) are moderated by public policy.”
To be born is not enough: the key role of innovative start-ups (2016, unknown): “Ultimately, newborn firms may substantially contribute to job creation provided that the net effect of new entrants—taking over the market shares of incumbents and exiting firms—brings about overall market growth (Malchow-Møller et al. 2011).”
Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries (2013, background): “Ultimately, new firms may substantially contribute to job creation, provided that the net effect of new entrants brings about overall market growth (Malchow-Møller et al., 2011).”