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Which Firms Create the Most Jobs in Developing Countries? Evidence from Tunisia

ACCOUNTING AGGREGATE EMPLOYMENT AGGREGATE PRODUCTIVITY AGGREGATE UNEMPLOYMENT ALLOCATIVE EFFICIENCY ATTRITION COOPERATIVES CORRELATIONS CREATIVE DESTRUCTION DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DRIVERS ECONOMIC GROWTH ECONOMICS EDUCATIONAL ATTAINMENT EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH EMPLOYMENT MEASURE EMPLOYMENT RATES EMPLOYMENT SHARE EMPLOYMENT TRENDS ENTREPRENEURS EXPANSION FIRM DYNAMICS FIRM DYNAMISM FIRM ENTRY FIRM EXIT FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRM SIZE DISTRIBUTION FIRM SURVIVAL FIRM TURNOVER HEALTH INSURANCE HIGH UNEMPLOYMENT INCOME INCOME DISTRIBUTION INFORMAL EMPLOYMENT INNOVATION JOB CREATION JOB CREATION RATE JOB CREATION RATES JOB DESTRUCTION JOB FLOWS JOB GENERATION JOBS LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR POLICY LABOR REGULATIONS LABOR SUPPLY LABORERS LABOUR LABOUR FORCE MANPOWER MEDIUM ENTERPRISE METHODOLOGY MICROENTERPRISES MOTIVATION NET EMPLOYMENT NET JOB CREATION PERSISTENT UNEMPLOYMENT PRECEDING SECTIONS PREVIOUS SECTION PRIVATE ENTERPRISES PRIVATE FIRMS PRIVATE SECTOR PRIVATE SECTOR JOB PRIVATE SECTOR JOBS PRODUCTIVE FIRMS PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PUBLIC EMPLOYMENT PUBLIC SECTOR EMPLOYMENT REGRESSION ANALYSIS RESEARCH WORKING PAPERS RESEARCHERS SALARIED EMPLOYMENT SALARIED WORKERS SELF EMPLOYMENT SMALL BUSINESS SMALL BUSINESSES SMALL FIRM SMALL FIRMS SME STATE OWNED ENTERPRISES SURVEY DATA TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT REDUCTION UNPAID WORKERS WAGE EMPLOYMENT WEIGHTING WORKER WORKERS
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World Bank Group, Washington, DC
Middle East and North Africa | Tunisia
2014-11-12T21:26:33Z | 2014-11-12T21:26:33Z | 2014-10

This paper examines private sector job creation in Tunisia over the period 1996-2010 using a unique database containing information on all registered private enterprises, including self-employment. In spite of stable growth of gross domestic product, overall net job creation was disappointing and firm dynamics were sluggish. The firm size distribution has remained skewed toward small firms, because of stagnation of incumbents and entrants starting small, typically as one-person firms (self-employment). Churning is limited, especially among large firms, and few firms manage to grow. Post-entry, small firms are the worst performers for job creation, even if they survive. Moreover, the association between productivity, profitability, and job creation is feeble, pointing towards weaknesses in the re-allocative process. Weak net job creation thus appears to be due to insufficient firm dynamism rather than excessive job destruction.

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