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Who Creates Jobs? Small versus Large versus Young

John Haltiwanger, Ron Jarmin () and Javier Miranda

The Review of Economics and Statistics, 2013, vol. 95, issue 2, 347-361

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.

Keywords: job creation; business size; U.S. Census Bureau (search for similar items in EconPapers)
JEL-codes: L25 L26 (search for similar items in EconPapers)
Date: 2013
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