Young companies ‘best for job creation’

New companies are much more likely to create jobs than any other type of firm, according to a comprehensive study carried out by the Central Bank.

The study sheds new light in the crucial area of job creation, which has important implications for future government policies.

According to the paper’s author, Martina Lawless, “The main finding is that the disproportionate contribution of small firms in job creation is driven mainly by young firms — with entrants being particularly important. In line with learning models of firm growth, once the firm is established, the link between size and growth weakens dramatically.