Abstract
<p>We use business register data for the United Kingdom to document the importance of the different channels that firms use to adjust their size. We show how the choice of adjustment channel impacts upon firm-level variables such as wages or productivity.</p> <p>Highlights ► Novel data covering almost the entire universe of UK firms. ► Adjustment channels: internal adjustment vs. greenfield investment vs. M&A. ► Document frequency and aggregate importance of adjustment channels. ► Analyze implications of the choice of channel for firm-level variables.</p>