Assessing determinants on job creation at the firm level: Swedish micro firm data
2012 (English)In: International journal of economics and finance, ISSN 1916-971X, Vol. 4, no 12Article in journal (Refereed) Published
This study analyses job-creation determinants at the firm level for a panel of Swedish micro firms across four industry sectors, using the GMM (Generalized Method of Moments) system to analyse a database consisting of 12532 Swedish micro firms during 2007. It was found that the firms’ size and age, the importance of debt financing and increased availability of liquidity are positively related to job creation as well as industry affiliation. Finally, the results suggest that a resource-based approach is at work in explaining job creation in micro firms. Unlike the majority of previous studies, this study is characterized by being based on a large and cross-sectoral firm-level dataset, testing a number of hypotheses driven from the resource-based approach. The present study contributes to the literature on the determinants of employment at the firm level as it investigates the importance of liquidity and financial leverage to firm labour demand dynamics in Sweden.
Place, publisher, year, edition, pages
2012. Vol. 4, no 12
Job-creation determinants, micro firms, GMM system model, Liquidity, financial leverage
Economics and Business
IdentifiersURN: urn:nbn:se:miun:diva-17467DOI: 10.5539/ijef.v4n12p105OAI: oai:DiVA.org:miun-17467DiVA: diva2:572541