Firm dynamics and productivity by age—evidence from Ireland
Bibliographic Data
| ID | 14867245 |
|---|---|
| Authors | Martina Lawless (0000-0002-3484-8670, Economic and Social Research Institute), Luke Rehill (University College Dublin, corresponding author) |
| Year | 2026 |
| Volume | 66 |
| Issue | 1 |
| Pages | 149-173 |
| Publication date | 2026-01-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-025-01099-y |
| OpenAlex | W4413992622 |
| Language | EN |
| References cited | 50 |
The establishment and growth of new businesses are key ingredients for economic growth and job creation, but also productivity growth. This paper examines a panel of firms from both manufacturing and services sectors over a 13-year period to compare the relative productivity performance of entrants, exitors and incumbents in Ireland. We find evidence of catch-up in productivity levels of new entrants towards that of incumbents in both sectors within 5 years. Exitors meanwhile exhibit a decline in their performance in the years preceding exit. We then construct a decomposition of aggregate productivity growth that captures the channels through which these firms contribute to aggregate productivity, accounting for the differences by age. In manufacturing, exit has a negative impact on aggregate productivity over the period, with this driven by older firms. In services however exit has a positive relationship due to unproductive young firms leaving the market
Demographic economics · Dynamics (music · Economic geography · Economics · Entrepreneurship · Macroeconomics · Productivity · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics · Psychology
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| Highly cited | No |
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