Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing

Matthew Barnes and Jonathan Haskel ()

No 461, Working Papers from Queen Mary University of London, School of Economics and Finance

Abstract: We use the ARD micro level data set for UK manufacturing to document job creation and job destruction (JC&D). Due to data limitations, previous UK studies were unable to use entry and exit in calculations of JC&D and/or were are at the firm rather than establishment/plant level and/or used data that understate the number of small businesses in the economy. Our data can overcome these problems being based on plant and establishment-level data from the UK Census of Production. We compute JC&D levels and rates and the contribution of small businesses for UK manufacturing between 1980 and 1991 and compare our findings with previous UK studies and other countries. We find: a) establishment (plant) job creation and destruction rates of 10.0% and 13.5% (11.2% and 14.7%) respectively, higher than other studies; b) large establishments (plants) are responsible for about 60% (55%) of job destruction; and c) small establishments (plants) are responsible for between 50% and 68% (57% and 70%) of job creation, depending on calculation method.

Keywords: Small firms; Job creation and destruction (search for similar items in EconPapers)
JEL-codes: H32 J23 J63 J68 L52 L60 (search for similar items in EconPapers)
Date: 2002-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:qmw:qmwecw:461

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