This booklet extends earlier analyses of the job creation of start-ups vs. established firms by taking into consideration the educational content of the jobs created and destroyed. It defines education-specific measures of job creation and job destruction at the firm level, and it uses these to construct a measure of "surplus job creation" defined as jobs created on top of any simultaneous destruction of similar jobs in incumbent firms in the same region and industry. Using Danish employer-employee data from 2002 to 2007, which identifies the start-ups and which covers almost the entire private sector, these measures provide a more nuanced assessment of the role of entrepreneurial firms in the job-creation process than previous studies. The findings show that while start-ups are responsible for the entire overall net job creation, incumbents account for more than a third of net job creation within high-skilled jobs. Moreover, start-ups "only" create around half of the surplus jobs, and even less of the high-skilled surplus jobs. Finally, this approach characterizes and identities differences across industries, educational groups, and regions. (Series: The Rockwool Foundation Research Unit - Study Paper - No. 100) [Subject: Labor Studies, Business]

About the Author

NIkolaj Malchow-Moller has been Dean at the Faculty of Business and Social Sciences at the University of Southern Denmark since 2014. He received his Ph.D. in Economics at the University of Aarhus, 2002. He has been awarded with the Stephan Schrader Prize 2012 for Munich Best Paper Award in Entrepreneurship Studies.

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