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PublicationArticle (with peer review)

High-Growth Firms: Not So Vital After All?

Abstract

High-growth firms have received considerable interest recently since they create most of the new jobs in the economy. The purpose of our paper is to investigate the characteristics of high-growth firms prior to their growth period, and whether these characteristics differ across industries. Using data on a large sample of limited liability firms in Sweden for the period 2007-2010, we find that high-growth firms do not have the characteristics that we typically associate with successful firms. On the contrary, our results indicate that high-growth firms initially have low profits and a weak financial position. This might explain why studies have found that so few high-growth firms are capable of sustaining their high growth rates in subsequent periods, and thus question policies that are targeted towards these companies.
Related content: Working paper No. 263

Daunfeldt, S-O., Halvarsson, D., & Mihaescu, O. (2016). High-Growth Firms: Not So Vital After All?International Review of Entrepreneurship, 14(4), paper no. 1541.

Details

Author
Daunfeldt, S-O., Halvarsson, D., & Mihaescu, O.
Publication year
2016
Published in

International Review of Entrepreneurship

Related

  • Bild av Daniel Halvarsson, medarbetare på Ratio
    Ph.D.

    Daniel Halvarsson

    +460760184541daniel.halvarsson@ratio.se
  • Associate Researcher

    Sven-Olov Daunfeldt

    +46702957284sven-olov.daunfeldt@huiresearch.se

Similar content

Article (with peer review)

Foreign ownership and transferring of gender norms

Halvarsson, D., Lark, O. & Gustavsson Tingvall, P.

Publication year

2026

Published in

Canadian Journal of Economics/Revue canadienne d’économique. First published 6 October 2026.

Abstract

This article examines whether foreign ownership transfers gender norms across borders and how those norms affect the gender pay gap within Swedish firms. Using matched employer–employee data from Sweden and dynamic difference-in-differences and high-dimensional fixed-effects models, the authors find that foreign ownership narrows the pay gap on average. Acquisitions by investors from more gender-equal countries reduce the gap, while estimated widening from less gender-equal countries is not robust.

Working paper

City size, employer concentration, and wage income inequality

Halvarsson, D., & Korpi, M.

Publication year

2025

Published in

Institute for Evaluation of Labour Market and Education Policy (IFAU)

Abstract

This study investigates the relationship between the urban wage premium and employer concentration using Swedish full population employer-employee data. Departing from an AKM modeling framework to distinguish worker from firm specific heterogeneity – a measure of rent-sharing – we then measure the urban wage premium using differences in the estimated firm fixed effects at the level of local industries, nested within local labor markets. Our results suggest that labor market employer concentration, as calculated using the Hirschman-Herfindahl index and a leave-one-out instrumental variable design, can account for a significant share of the estimated urban wage premium (UWP). Addressing city-level wage income inequality by applying our model to different segments of the local labor market income distribution, we find that while the UWP pertains to all income segments, it is largest for top-income levels (above the 90th percentile), and within this segment employer concentration also has the largest explanatory power. Thus, while being an important explanatory factor for all percentiles of the local income distribution, a relatively lower employer concentration within larger cities, and vice versa, higher concentration within smaller cities, primarily help explain the variance of top wages within these cities/labor markets.

Working paper

Ratio Working Paper No. 374: The Impact of High-Skilled Migration on Productivity in Swedish Firms

Halvarsson, D.
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Publication year

2024

Published in

Ratio Working paper series.

Abstract

The migration of highly skilled labor has received increasing attention due to its role in fostering innovation and productivity. This study explores the impact of foreign experts on the productivity of Swedish companies. Utilizing a difference-in-difference model with comprehensive register data from 1996 to 2015, the analysis reveals that Swedish companies hiring foreign experts experience a significant productivity increase of 6 to 11 percent within two to three years post-hiring. This effect is particularly pronounced in small and medium-sized enterprises and is slightly enhanced when excluding returning Swedish-born experts. Additionally, the study finds that both labor and capital productivity rise, along with a modest increase in wage incomes for other employees, estimated at 1.5 to 2 percent. However, the wage effects are less robust compared to productivity impacts. The findings underscore the importance of attracting foreign talent to bolster productivity. This research fills a crucial gap in the literature by focusing on the specific effects of foreign experts on total factor productivity in a small, knowledge-oriented economy like Sweden’s.

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