Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228159
Authors: 
Calvino, Flavio
Giachini, Daniele
Guerini, Mattia
Year of Publication: 
2020
Series/Report no.: 
LEM Working Paper Series No. 2020/20
Abstract: 
We investigate upon the shape and the determinants of the age distribution of business firms. By employing a novel dataset covering the population of French businesses, we highlight that a geometric law provides a reasonable approximation for the age distribution. However, relevant systematic deviations and sectoral heterogeneity appear. We develop a stochastic model of firm dynamics to explain the mechanisms behind this evidence and relate them to business dynamism. Results reveal a long-term decline in entry rates and lower survival probabilities of young firms. Our findings bear important implications for aggregate outcomes, notably employment growth.
Subjects: 
Firm demographics
age distribution
business dynamism
JEL: 
L11
L22
M13
M21
Document Type: 
Working Paper

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