Original scientific paper
https://doi.org/10.1080/1331677X.2017.1305804
Firm size and job creation: evidence from Turkey
Ergun Dogan
M. Qamarul Islam
Mehmet Yazici
Abstract
This study examines the relationship between firm size and job
creation by using an extensive data set covering all non-farm Turkish
businesses with 20 or more employees from 2003 to 2010. We find that
small firms (firms with employees between 20 and 100 employees)
have higher mean job flow rates (job creation, job destruction and
net job creation rates) than large firms. Firm size and job flow rates
are inversely related, and this relationship is especially prominent
for firms with 50 employees or more. Although the overall pattern
observed is also observed in both sectors, job creation rates in services
are higher than the ones in manufacturing. The magnitudes of job
destruction rates are comparable across sectors. Higher job creation
rate in services but comparable job destruction rate results in higher
net job creation rate in services. As for shares, only for smaller firms
(20–49 and 50–99 size categories), job creation shares are greater than
their shares in employment. But these firms have disproportionate
job destruction shares as well. We also find that only the 20–49
category firms contribute to net job creation more than their share
in employment. The smaller firms have high disproportionate shares
in job creation and destruction in manufacturing and services as well.
Keywords
Job creation; job destruction; small firms; firm growth; entry; exit
Hrčak ID:
180821
URI
Publication date:
1.12.2017.
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