We analyze the persistence of new jobs in new and old firms. This measure assesses the sustainability of job creation in different circumstances. We find that new jobs in Austria last significantly longer in new than in old firms.

While the volatility of job creations has been studied extensively, the survival chances of new jobs are less researched. The question when and how to expand a firm is of importance, both from the firms and from a macro perspective. Adjustment cost theories and arguments about option values of...

In 1996 Austria introduced a tax for the layoff of older workers, which was tightened in 2000. The regulation requires employers to pay a tax of up to 170% of the gross monthly income when they give notice to employees aged 50 or more. We use data from Austrian social security records to...

Die Evaluierung des Malus bei Kündigung älterer ArbeitnehmerInnen zeigt ein differenziertes Bild. Während direkt nach der Einführung im Jahr 1996 die zu entrichtenden Strafzahlungen offenbar zu gering waren, um die Weiterbeschäftigung zu fördern, lassen sich nach der Reform 2000 und der...