Entrepreneurs Versus Incumbents

Who Creates the Better Jobs?

Johan M. Kuhn, Nikolaj Malchow-Møller, Anders Sørensen

Research output: Working paperResearch

Abstract

What are the characteristics Even though this question has been addressed by many researchers before us, we provide new evidence to the field since we measure the entrepreneur as the organic new firm. In the literature, the majority of studies have focused on entrepreneurs as measured by small or new firms. By organic new firm, we mean new firms that are not the result of restructurings or organising existing or additional activities in a formally new firm. Moreover, we distinguish entrepreneurial firms by different types and distinguish between growing and declining industry‐region clusters. Our results differ from the findings in the existing literature. Specifically, we find that compared to incumbents, entrepreneurial firms have higher total factor productivity, are more skill intensive, and pay higher wages. The differences are more pronounced in growing clusters. Moreover, the results show important differences between different types of entrepreneurial firms. Specifically, spin‐offs are found to enjoy the largest productivity advantage. The wage and skill premiums at the firm level disappear at the job level, as larger incumbents are both more skill intensive and pay higher wages than smaller incumbents.
Original languageEnglish
Place of PublicationOdense
PublisherSyddansk Universitetsforlag
Number of pages129
ISBN (Print)9788793119284
Publication statusPublished - 2015
SeriesStudy Paper. The Rockwool Foundation Research Unit
Number101
ISSN0908-3979

Keywords

  • Entrepreneurship
  • Job quality
  • Productivity

Cite this

Kuhn, J. M., Malchow-Møller, N., & Sørensen, A. (2015). Entrepreneurs Versus Incumbents: Who Creates the Better Jobs? Odense: Syddansk Universitetsforlag. Study Paper. The Rockwool Foundation Research Unit, No. 101
Kuhn, Johan M. ; Malchow-Møller, Nikolaj ; Sørensen, Anders. / Entrepreneurs Versus Incumbents : Who Creates the Better Jobs?. Odense : Syddansk Universitetsforlag, 2015. (Study Paper. The Rockwool Foundation Research Unit; No. 101).
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Kuhn, JM, Malchow-Møller, N & Sørensen, A 2015 'Entrepreneurs Versus Incumbents: Who Creates the Better Jobs?' Syddansk Universitetsforlag, Odense.

Entrepreneurs Versus Incumbents : Who Creates the Better Jobs? / Kuhn, Johan M.; Malchow-Møller, Nikolaj; Sørensen, Anders.

Odense : Syddansk Universitetsforlag, 2015.

Research output: Working paperResearch

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AB - What are the characteristics Even though this question has been addressed by many researchers before us, we provide new evidence to the field since we measure the entrepreneur as the organic new firm. In the literature, the majority of studies have focused on entrepreneurs as measured by small or new firms. By organic new firm, we mean new firms that are not the result of restructurings or organising existing or additional activities in a formally new firm. Moreover, we distinguish entrepreneurial firms by different types and distinguish between growing and declining industry‐region clusters. Our results differ from the findings in the existing literature. Specifically, we find that compared to incumbents, entrepreneurial firms have higher total factor productivity, are more skill intensive, and pay higher wages. The differences are more pronounced in growing clusters. Moreover, the results show important differences between different types of entrepreneurial firms. Specifically, spin‐offs are found to enjoy the largest productivity advantage. The wage and skill premiums at the firm level disappear at the job level, as larger incumbents are both more skill intensive and pay higher wages than smaller incumbents.

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Kuhn JM, Malchow-Møller N, Sørensen A. Entrepreneurs Versus Incumbents: Who Creates the Better Jobs? Odense: Syddansk Universitetsforlag. 2015.