Seminar: Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Haibo Zhou (Rijksuniversiteit Groningen)

Discussant: Wiljan van den Berge (CPB)

Language: English

Registration:  Please register here

Abstract subject:
Growing firms, particularly high-growth firms, are considered to be the main drivers of economic dynamics. There is much literature on the separate subjects of firm growth and exit, but the relationship between the two aspects has been largely neglected. Using Dutch longitudinal data (1999-2011), we investigate the relationship between organic employment growth and subsequent exit due to firm death. Our results show that positive employment growth and exit are largely independent from each other. However, we find a risk of growing fast for some groups of firms depending on size and industry. Implications for research and policy-makers are discussed.

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