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Firm Sizes And Economic Development: Estimating Long-Term Effects On U.S. County Growth, 1990–2000

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  • Timothy Komarek
  • Scott Loveridge

Abstract

type="main"> This paper investigates the role of the business size distribution on income and employment growth in U.S. counties from 1990 to 2000. We measure the business size distribution as the share of employees across nine establishment size categories that range from microfirms (one to four employees) to large firms (1,000+ employees) and using three indices similar to a Gini coefficient. Results show that the business size distribution has a significant impact on county-level growth patterns. Employment shares in small firms increase employment growth, but decrease income growth. One possible conclusion suggests policies emphasizing small firms and entrepreneurship during times of high unemployment.

Suggested Citation

  • Timothy Komarek & Scott Loveridge, 2015. "Firm Sizes And Economic Development: Estimating Long-Term Effects On U.S. County Growth, 1990–2000," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 262-279, March.
    • Handle: RePEc:bla:jregsc:v:55:y:2015:i:2:p:262-279
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    4. Andersson, Martin & Lavesson, Niclas & Partridge, Mark D., 2019. "Local Rates of New Firm Formation: An Empirical Exploration using Swedish Data," Working Paper Series 1290, Research Institute of Industrial Economics.

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