Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 169: Who do High-growth Firms Employ, and Who do they Hire?

Alex Coad (), Sven-Olov Daunfeldt (), Dan Johansson () and Karl Wennberg ()
Additional contact information
Alex Coad: Science and Technology Policy Research (SPRU), Freeman Centre, University of Sussex, Postal: Science and Technology Policy Research (SPRU) Freeman Centre, University of Sussex , Brighton BN1 9QE , United Kingdom
Sven-Olov Daunfeldt: The Swedish Retail Institute (HUI) and Dalarna University, Postal: The Swedish Retail Institute (HUI), SE – 103 29 Stockholm, Sweden
Dan Johansson: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 3203, SE-103 64 Stockholm, Sweden
Karl Wennberg: The Ratio Institute and Stockholm School of Economics, Postal: The Ratio Institute, P.O. Box 3203, SE-103 64 Stockholm, Sweden

Abstract: The purpose of this paper is to study who high- growth firms (HGFs) hire using a matched employer-employee dataset for all knowledge intensive industries in Sweden, where high growth is measured over the period 1999-2002. The results indicate that HGFs to a larger extent employ young people, immigrants, and individuals with longer unemployment periods. However, these patterns seem contingent on the stage of firm evolution. HGFs that have already realized rapid growth seem to start focusing on hiring individuals from other companies, even though immigrants are still overrepresented among new employees.

Keywords: Gazelles; firm growth; rapid firm growth; high-impact firms

JEL-codes: D24; L25; L26

31 pages, July 1, 2011

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