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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 354:
EFFECTS OF HUMAN CAPITAL ON THE GROWTH AND SURVIVAL OF SWEDISH BUSINESSES

Mikaela Backman (), Todd Gabe and Charlotta Mellander ()

Abstract: This paper examines the effects of human capital on the growth and survival of a large sample of Swedish businesses. Human capital is represented by conventional measures of the educational attainment and experience of an establishment’s workers, and skills-based measures of the types of occupations present in the company. Controlling for an establishment’s size and age, as well as its industry and region of location, we find that the human capital embodied in a company’s workers significantly affects its performance. The specific effects, however, depend on how human capital is measured and whether the analysis focuses on growth or survival.

Keywords: Firm growth; firm survival; human capital; education; skills; (follow links to similar papers)

JEL-Codes: J21; J24; L25; (follow links to similar papers)

26 pages, March 25, 2014

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