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Establishment Size and Local Employment Growth

Sherrill Shaffer

Small Business Economics, 2006, vol. 26, issue 5, 439-454

Abstract: In a sample of more than 2000 U.S. counties, smaller average establishment size is generally associated with faster subsequent growth rates of sectoral employment, both within and across sectors. The estimated effects are large in magnitude and thus economically important, and are consistent with several theories previously developed. These findings contribute toward a more precise understanding of the role of small businesses in economic growth and labor markets. Copyright Springer 2006

Keywords: establishment size; employment growth; J23; L11; O47 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s11187-005-5598-0

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