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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.

Suggested Citation

  • Werner Hölzl, 2012. "Job Creation and Employment Size Categories. A Study of Methodological Alternatives," WIFO Working Papers 425, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2012:i:425
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    File URL: http://www.wifo.ac.at/wwa/pubid/44113
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    References listed on IDEAS

    as
    1. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," WIFO Working Papers 435, WIFO.
    2. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, pages 297-315.
    3. Alex Coad & Werner Hölzl, 2012. "Firm Growth: Empirical Analysis," Chapters,in: Handbook on the Economics and Theory of the Firm, chapter 24 Edward Elgar Publishing.
    4. David Neumark & Brandon Wall & Junfu Zhang, 2011. "Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 16-29, August.
    5. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, pages 297-315.
    6. Werner Hölzl & Peter Huber, 2009. "An Anatomy of Firm Level Job Creation Rates over the Business Cycle," WIFO Working Papers 348, WIFO.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Arbeitsplatzschaffung; Unternehmensgrößenklassen;

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