Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/201257 
Year of Publication: 
2016
Series/Report no.: 
ETLA Working Papers No. 42
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
The novel Finnish Longitudinal OWNer-Employer-Employee (FLOWN) database was used to analyze how the characteristics of owners and employees relate to firm performance as determined by labor productivity, survival and employment growth. Focusing on the role of the owner’s formal education and previous experience as an employee, the results show that previous experience in a high-productivity firm strongly predicts high productivity and probability of survival for the entrepreneur’s new firm. This can be interpreted as evidence of knowledge spillover through labor mobility. Strikingly, firms established in times of intensive excess job reallocation were found to exhibit superior productivity performance in the later phases of their life cycles.
Subjects: 
Entrepreneurship
ownership
firm performance
human capital
diffusion of knowledge
JEL: 
L25
L26
J24
J62
O33
Document Type: 
Working Paper

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