Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia

This paper examines private sector job creation in Tunisia over the period 1996–2010 using a unique database containing information on all registered private enterprises, including self-employment. In spite of stable GDP growth, overall net job creation was disappointing and firm dynamics were slugg...

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Main Authors:	Rijkers, Bob, Arouri, Hassen, Freund, Caroline, Nucifora, Antonio
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2014
Subjects:	Firm dynamics Job creation Labor demand Firm survival SMEs Small and medium enterprises
Online Access:	http://hdl.handle.net/10986/20721

id	okr-10986-20721
recordtype	oai_dc
spelling	okr-10986-207212021-04-23T14:03:59Z Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia Rijkers, Bob Arouri, Hassen Freund, Caroline Nucifora, Antonio Firm dynamics Job creation Labor demand Firm survival SMEs Small and medium enterprises This paper examines private sector job creation in Tunisia over the period 1996–2010 using a unique database containing information on all registered private enterprises, including self-employment. In spite of stable GDP growth, overall net job creation was disappointing and firm dynamics were sluggish. The firm size distribution has remained skewed towards small firms, because of stagnation of incumbents and entrants starting small, typically as one-person firms (i.e. self-employment). Churning is limited, especially amongst large firms, and very few firms manage to grow. Post-entry, small firms are the worst performers in terms of job creation, even if they survive. Moreover, the association between productivity, profitability and job creation is feeble, pointing towards weaknesses in the re-allocative process. Weak net job creation thus appears to be due to insufficient firm dynamism rather than excessive job destruction. 2014-12-16T15:57:25Z 2014-12-16T15:57:25Z 2014-12 Journal Article Labour Economics 0927-5371 http://hdl.handle.net/10986/20721 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Middle East and North Africa Tunisia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Firm dynamics Job creation Labor demand Firm survival SMEs Small and medium enterprises
spellingShingle	Firm dynamics Job creation Labor demand Firm survival SMEs Small and medium enterprises Rijkers, Bob Arouri, Hassen Freund, Caroline Nucifora, Antonio Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
geographic_facet	Middle East and North Africa Tunisia
description	This paper examines private sector job creation in Tunisia over the period 1996–2010 using a unique database containing information on all registered private enterprises, including self-employment. In spite of stable GDP growth, overall net job creation was disappointing and firm dynamics were sluggish. The firm size distribution has remained skewed towards small firms, because of stagnation of incumbents and entrants starting small, typically as one-person firms (i.e. self-employment). Churning is limited, especially amongst large firms, and very few firms manage to grow. Post-entry, small firms are the worst performers in terms of job creation, even if they survive. Moreover, the association between productivity, profitability and job creation is feeble, pointing towards weaknesses in the re-allocative process. Weak net job creation thus appears to be due to insufficient firm dynamism rather than excessive job destruction.
format	Journal Article
author	Rijkers, Bob Arouri, Hassen Freund, Caroline Nucifora, Antonio
author_facet	Rijkers, Bob Arouri, Hassen Freund, Caroline Nucifora, Antonio
author_sort	Rijkers, Bob
title	Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
title_short	Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
title_full	Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
title_fullStr	Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
title_full_unstemmed	Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia
title_sort	which firms create the most jobs in developing countries? evidence from tunisia
publisher	Elsevier
publishDate	2014
url	http://hdl.handle.net/10986/20721
_version_	1764447054021525504

Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia

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