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Who Creates Jobs? Small versus Large versus Young

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Author Info

  • John Haltiwanger

    (University of Maryland and NBER)

  • Ron S. Jarmin

    (U.S. Census Bureau)

  • Javier Miranda

    (U.S. Census Bureau)

Abstract

The view that small businesses create the most jobs remains appealing to policymakers and small business advocates. Using data from the Census Bureau's Business Dynamics Statistics and Longitudinal Business Database, we explore the many issues at the core of this ongoing debate. We find that the relationship between firm size and employment growth is sensitive to these issues. However, our main finding is that once we control for firm age, there is no systematic relationship between firm size and growth. Our findings highlight the important role of business start-ups and young businesses in U.S. job creation. Copyright: No rights reserved. This work was authored as part of the Contributor's official duties as an Employee of the United States Government and is therefore a work of the United States Government. In accordance with 17 U.S.C. 105, no copyright protection is available for such works under U.S. law.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00288
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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 95 (2013)
Issue (Month): 2 (May)
Pages: 347-361

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Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:347-361

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

Related research

Keywords: job creation; business size; U.S. Census Bureau;

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Cited by:
  1. Brunello, Giorgio & Bassanini, Andrea & Caroli, Eve, 2014. "Not in my Community: Social Pressure and the Geography of Dismissals," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/13579, Paris Dauphine University.
  2. Nezih Guner & James Tybout & A. Kerem Cosar, 2009. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," 2009 Meeting Papers, Society for Economic Dynamics 811, Society for Economic Dynamics.
  3. Bornhäll, Anders & Daunfeldt, Sven-Olov & Rudholm, Niklas, 2014. "Employment Protection Legislation and Firm Growth: Evidence from a Natural Experiment," HUI Working Papers, HUI Research 102, HUI Research.
  4. Chen, Daphne & Qi, Shi & Schlagenhauf, Don E., 2014. "Corporate income tax, legal form of organization, and employment," Working Papers, Federal Reserve Bank of St. Louis 2014-18, Federal Reserve Bank of St. Louis.
  5. World Bank, 2014. "Jobs or Privileges : Unleashing the Employment Potential of the Middle East and North Africa," World Bank Other Operational Studies 19292, The World Bank.
  6. Tatiana Didier & Ross Levine & Sergio L. Schmukler, 2014. "Capital Market Financing, Firm Growth, Firm Size Distribution," NBER Working Papers 20336, National Bureau of Economic Research, Inc.
  7. Roberta Distante & Ivan Petrella & Emiliano Santoro, 2014. "Size, Age and the Growth of Firms: New Evidence from Quantile Regressions," Working Papers, Fondazione Eni Enrico Mattei 2014.69, Fondazione Eni Enrico Mattei.
  8. Jose L. Groizard & Priya Ranjan & Antonio Rodriguez-Lopez, 2014. "Trade Costs and Job Flows: Evidence from Establishment-Level Data," CESifo Working Paper Series, CESifo Group Munich 4876, CESifo Group Munich.
  9. Emilio Congregado & Antonio Golpe & André Stel, 2014. "The role of scale economies in determining firm size in modern economies," The Annals of Regional Science, Springer, Springer, vol. 52(2), pages 431-455, March.
  10. Chiara Criscuolo & Peter N. Gal & Carlo Menon, 2014. "The Dynamics of Employment Growth: New Evidence from 18 Countries," OECD Science, Technology and Industry Policy Papers, OECD Publishing 14, OECD Publishing.
  11. Mariana Pereira-López, 2014. "Indirect Job Creation and the Informal Sector in Mexico," Working Paper Series Sobre México 2014001, Sobre México. Temas en economía.
  12. Manuel Adelino & Song Ma & David T. Robinson, 2014. "Firm Age, Investment Opportunities, and Job Creation," NBER Working Papers 19845, National Bureau of Economic Research, Inc.
  13. Dutz, Mark A., 2013. "Resource reallocation and innovation : converting enterprise risks into opportunities," Policy Research Working Paper Series, The World Bank 6534, The World Bank.

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