Entrepreneurship, Job Creation and Wage Growth

Nikolaj Malchow-Møller*, Bertel Schjerning, Anders Sørensen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


This paper analyses the importance of entrepreneurs in terms of job creation and wage growth. Relying on unique data that cover all establishments, firms and individuals in the Danish private sector, we are able to distil a number of different subsets from the total set of new establishments—subsets which allow us to more precisely capture the “truly new” or “entrepreneurial” establishments than has been possible in previous studies. Using these data, we find that while new establishments in general account for one-third of the gross job creation in the economy, entrepreneurial establishments are responsible for around 25% of this, and thus only account for about 8% of total gross job creation in the economy. However, entrepreneurial establishments seem to generate more additional jobs than other new establishments in the years following entry. Finally, the jobs generated by entrepreneurial establishments are to a large extent low-wage jobs, as they are not found to contribute to the growth in average wages.
Original languageEnglish
JournalSmall Business Economics
Issue number1
Pages (from-to)15-32
Number of pages18
Publication statusPublished - 2011


  • Entrepreneurial establishments
  • Job creation
  • Wage Growth

Cite this