Feature Articles
Employment Dynamics of Firms in Singapore: Young Firms vs. Older Firms
13 August 2018
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The economic literature suggests that business dynamism – the process of birth, growth, decline and exit of firms – is an important aspect of a healthy economy. This dynamism is a feature of market economies such as the United States where the high pace of job and worker reallocation has been important for productivity growth and job creation (Decker et al., 2014).
In this article, we examine the growth dynamics of firms by the age-employment size dimensions. In particular, we take a closer look at the process of employment creation and destruction by firms of different ages through the lenses of the entry, growth and exit of these firms. We also explore the contribution of young and older firms to aggregate net employment creation in the Singapore economy.