Equilibrium search theory suggests that the wage distribution in a cross section of workers is closely related to labor market transitions and associated wage changes. Accordingly, job-to-job transitions are central in explaining the wage distribution. This paper usese the IAB employment...

Small and medium-sized enterprises are considered to be the principal generator of new jobs in the industrialised countries at least since the Birch (1979) study. According to this image, they are also stabilising the economy during the business cycles because of the lower volatility of their...