Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate?
Panel data of Norwegian industries show that when they increase in the number of firms, firm size inequality in employees decreases. Decreasing firm size inequality implies that large firms become smaller in employees, and an increasing number of firms in an industry implies that more new firms are...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-05-01
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| Series: | Frontiers in Sociology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fsoc.2022.853689/full |
| _version_ | 1818232063642304512 |
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| author | Jarle Aarstad Olav Andreas Kvitastein |
| author_facet | Jarle Aarstad Olav Andreas Kvitastein |
| author_sort | Jarle Aarstad |
| collection | DOAJ |
| description | Panel data of Norwegian industries show that when they increase in the number of firms, firm size inequality in employees decreases. Decreasing firm size inequality implies that large firms become smaller in employees, and an increasing number of firms in an industry implies that more new firms are established than closed, i.e., ceasing to operate and going out of business. Thus, new firms chiefly recruit employees from large firms. Similarly, the data show that when industries decrease in the number of firms, firm size inequality in employees increases. Increasing firm size inequality implies that large firms become larger in employees, and a decreasing number of firms in an industry implies that more firms are closed than established. Thus, large firms chiefly recruit employees from firms that cease to operate. An implication of our findings is that large firms are crucial in recruiting employees to new firms and in recruiting employees from firms that cease to operate. |
| first_indexed | 2024-12-12T11:00:20Z |
| format | Article |
| id | doaj.art-380e25cb8b174fe0892d300598181558 |
| institution | Directory Open Access Journal |
| issn | 2297-7775 |
| language | English |
| last_indexed | 2024-12-12T11:00:20Z |
| publishDate | 2022-05-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Sociology |
| spelling | doaj.art-380e25cb8b174fe0892d3005981815582022-12-22T00:26:33ZengFrontiers Media S.A.Frontiers in Sociology2297-77752022-05-01710.3389/fsoc.2022.853689853689Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate?Jarle AarstadOlav Andreas KvitasteinPanel data of Norwegian industries show that when they increase in the number of firms, firm size inequality in employees decreases. Decreasing firm size inequality implies that large firms become smaller in employees, and an increasing number of firms in an industry implies that more new firms are established than closed, i.e., ceasing to operate and going out of business. Thus, new firms chiefly recruit employees from large firms. Similarly, the data show that when industries decrease in the number of firms, firm size inequality in employees increases. Increasing firm size inequality implies that large firms become larger in employees, and a decreasing number of firms in an industry implies that more firms are closed than established. Thus, large firms chiefly recruit employees from firms that cease to operate. An implication of our findings is that large firms are crucial in recruiting employees to new firms and in recruiting employees from firms that cease to operate.https://www.frontiersin.org/articles/10.3389/fsoc.2022.853689/fullnew firm formationfirm closurefirm size inequalityrecruitmentpanel datadynamic panel regression |
| spellingShingle | Jarle Aarstad Olav Andreas Kvitastein Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? Frontiers in Sociology new firm formation firm closure firm size inequality recruitment panel data dynamic panel regression |
| title | Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? |
| title_full | Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? |
| title_fullStr | Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? |
| title_full_unstemmed | Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? |
| title_short | Do New Firms Recruit Employees From Small or Large Firms, and Do Small or Large Firms Recruit Employees From Firms That Cease to Operate? |
| title_sort | do new firms recruit employees from small or large firms and do small or large firms recruit employees from firms that cease to operate |
| topic | new firm formation firm closure firm size inequality recruitment panel data dynamic panel regression |
| url | https://www.frontiersin.org/articles/10.3389/fsoc.2022.853689/full |
| work_keys_str_mv | AT jarleaarstad donewfirmsrecruitemployeesfromsmallorlargefirmsanddosmallorlargefirmsrecruitemployeesfromfirmsthatceasetooperate AT olavandreaskvitastein donewfirmsrecruitemployeesfromsmallorlargefirmsanddosmallorlargefirmsrecruitemployeesfromfirmsthatceasetooperate |