The Employment Contribution of Small and Medium-sized Enterprises According to the EU-definition First Evidence Based on the IAB-Establishment-Panel for Germany
AbstractStatements emphasizing the major contribution of the small and medium sized enterprises (SMEs) for net job creation are quite frequent. Concerning the current definition of SMEs provided by the European Commission (EC), this paper makes a first attempt to approximate SMEs’ contribution to net employment change based on the IAB-Establishment Panel Data over the years 1998 to 2005 for the whole private economy. Due to sufficient data, independent oneplant firms with less than 250 employees may approximate the group of SMEs according at best. Comparisons with the firm-level Amadeus database validate the suitability of the IABestablishment panel data for calculation of the SMEs’ employment share, as long as one controls for the establishments’ independence status. The employment share lies about fifty percent. As a matter of fact, the employment share of affiliated SMEs increases over time. Furthermore, independent small plants do not show higher net employment change rates than neither affiliated plants nor middle-sized and large plants. The results reinforce once again the impression that empirical evidence for the assumed superiority of SMEs, is very weak. Further research should mention the role of ownership and firms venturing on the level of firm as well as for the economy at all in more detail.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 228 (2008)
Issue (Month): 1 (February)
Contact details of provider:
Postal: Licher Straße 74, 35394 Gießen
Phone: +49 (0)641 99 22 001
Fax: +49 (0)641 99 22 009
Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
More information through EDIRC
Employment; SME; corporate networks; panel data;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Grotz, Reinhold & Brixy, Udo, 2002. "Entry-rates, the share of surviving businesses and employment growth: differences between West and East Germany since unification," ERSA conference papers ersa02p175, European Regional Science Association.
- Dirk Engel & Georg Metzger & Michaela Niefert & Daniel Skambracks, 2004. "Der Beschäftigungsbeitrag kleiner und mittlerer Unternehmen," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 38, 01.
- Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996.
" Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts,"
Small Business Economics,
Springer, vol. 8(4), pages 297-315, August.
- Steven J. Davis & John Haltiwanger & Scott Schuh, 1993. "Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts," NBER Working Papers 4492, National Bureau of Economic Research, Inc.
- Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, vol. 27(2), pages 245-260, October.
- Bauer, Thomas K. & Schmucker, Alexandra & Vorell, Mathias, 2008. "KMU und Arbeitsplatzdynamik : eine Analyse auf Basis der Beschäftigten-Historik-Datei," IAB Discussion Paper 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Joachim Wagner, 2006. "Politikrelevante Folgerungen aus Analysen mit Firmendaten der Amtlichen Statistik," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 359-374.
- Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Winker).
If references are entirely missing, you can add them using this form.