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Job Creation and Employment Size Categories. A Study of Methodological Alternatives

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  • Werner Hölzl

    (WIFO)

Abstract

The study examines four methods to allocate changes in employment to the various employment size categories. For annual data, the reference parameter should be the average size of the enterprise or a dynamic allocation procedure. Due to regression bias, job creation by smaller enterprises is overestimated when figures from the previous year or from start-ups are used. Using the final enterprise size overestimates job creation by large-scale businesses. Quarterly data are best served by a dynamic allocation to size categories. This method of allocation, used as its official method by the American Bureau for Labor Statistics, is the only one that allows allocating new formations and closures to the size categories.

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File URL: http://www.wifo.ac.at/wwa/pubid/44113
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Bibliographic Info

Paper provided by WIFO in its series WIFO Working Papers with number 425.

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Length: 33 pages
Date of creation: 25 Apr 2012
Date of revision:
Handle: RePEc:wfo:wpaper:y:2012:i:425

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Keywords: Arbeitsplatzschaffung; Unternehmensgrößenklassen;

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  1. Werner Hölzl & Peter Huber, 2009. "An Anatomy of Firm Level Job Creation Rates over the Business Cycle," WIFO Working Papers 348, WIFO.
  2. Alex Coad & Werner Hölzl, 2010. "Firm Growth: Empirical Analysis," WIFO Working Papers 361, WIFO.
  3. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," WIFO Working Papers 435, WIFO.
  4. Neumark, David & Wall, Brandon & Zhang, Junfu, 2008. "Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series," IZA Discussion Papers 3888, Institute for the Study of Labor (IZA).
  5. 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.
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