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Who Creates Jobs? Small versus Large versus Young

Author

Listed:
  • 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.

Suggested Citation

  • John Haltiwanger & Ron S. Jarmin & Javier Miranda, 2013. "Who Creates Jobs? Small versus Large versus Young," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 347-361, May.
  • Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:347-361
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    More about this item

    Keywords

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

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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