Dear colleagues, The Department of Economics cordially invites you to the WU Economic Research Seminar (Department Seminar) on Wednesday, March 21, with Eva Erhardt (Johannes Gutenberg University Mainz) on "Firms after high growth: Understanding the impact of different growth measures" Abstract: Do high-growth firms continue to create jobs after the high-growth period or is high-growth a one-time event? Does the answer to this question depend on the definition of high growth? This paper analyzes data from Amadeus on registered Bulgarian firms for three consecutive 3-year periods (2001-2004, 2004-2007, and 2007-2010). We use absolute growth to define and measure the long-term contribution of high-growth firms to employment for the first time in the literature and assume that the actual change in headcount matters most from a labor market perspective. We then compare the absolute definition of high-growth to a relative one and the composite measure recommended by Eurostat-OECD. To decompose the impact of surviving and exiting firms on aggregate effects, we investigate future growth by means of a two-part model. We find that definitions are central for outcomes. The three differently defined sets of high growth firms vary substantially not only in terms of repeating high growth or exiting after high growth, but also in their future growth performance compared to non-high-growth firms. Our results for Bulgarian firms largely confirm what has been found for high-income countries: surviving relative high-growth firms are characterized by negative future growth rates, while those defined according to Eurostat-OECD or other composite indices grow positively after high growth. If growth is measured in absolute terms, then surviving high growth firms continue to create more jobs than non-high growth firms in the six years after high growth. Taking firm exits into account however, absolute high-growth firms are outperformed by average firms due to the job losses caused by large exiting high-growth firms - with one notable exception: high-growth firms of initially small size (10-49 employees) continue to grow and indeed seem a worthwhile target for policies promoting high-growth entrepreneurship. Place and time: Wednesday, March 21, 4.30 - 6.00 p.m., Campus WU, Welthandelsplatz 1, 1020 Vienna, building D4, 2nd floor, Department meeting room 2.008. With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Institute for International Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Fax: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/ Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Fax: +43/1/7989386 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> Webpage: http://www.wifo.ac.at/harald_oberhofer