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Job Creation, Job Destruction and the Role of Small Firms: Firm-Level Evidence for the UK

  • Alexander Hijzen
  • Richard Upward
  • Peter W. Wright

Evidence on job creation and destruction for the United Kingdom is limited, dated, and refers almost entirely to the manufacturing sector. We use firm-level data from 1997 to 2008 for almost all sectors, including services, and show that firms in the service sector exhibit much higher rates of job creation, but almost exactly the same rates of job destruction as those in manufacturing. 'Small' firms account for a disproportionately large fraction of job creation and destruction relative to their share of employment. Jobs created by small firms are no less likely to persist than those created by large firms. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2010.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0084.2010.00584.x
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Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 72 (2010)
Issue (Month): 5 (October)
Pages: 621-647

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Handle: RePEc:bla:obuest:v:72:y:2010:i:5:p:621-647
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  1. John M. Abowd & Patrick Corbel & Francis Kramarz, 1999. "The Entry And Exit Of Workers And The Growth Of Employment: An Analysis Of French Establishments," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 170-187, May.
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  3. 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.
  4. Picot, Garnett & Baldwin, John R., 1994. "Employment Generation by Small Producers in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1994070e, Statistics Canada, Analytical Studies Branch.
  5. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 19 pages.
  6. Konings, Jozef, 1995. "Job Creation and Job Destruction in the UK Manufacturing Sector," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 5-24, February.
  7. Davidsson, Per & Lindmark, Leif & Olofsson, Christer, 1998. "The Extent of Overestimation of Small Firm Job Creation--An Empirical Examination of the Regression Bias," Small Business Economics, Springer, vol. 11(1), pages 87-100, August.
  8. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, March.
  9. Matthew Barnes & Jonathan Haskel, 2002. "Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing," Working Papers 461, Queen Mary University of London, School of Economics and Finance.
  10. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
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