Economics
Do small businesses create more jobs? New evidence for the united states from the national establishment time series
Document Type
Article
Abstract
We use the National Establishment Time Series (NETS) to revisit the debate about the role of small businesses in job creation (Birch, 1987; Davis, Haltiwanger, & Schuh, 1996a). Using the NETS data, we examine evidence for the overall economy, as well as for different sectors. The results indicate that small firms and small establishments create more jobs, on net, although the difference is much smaller than Birch's methods suggest. Moreover, in the recent period we study, a negative relationship between establishment size and net job creation holds for both the manufacturing and services sectors. © 2011 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Publication Title
Review of Economics and Statistics
Publication Date
2-2011
Volume
93
Issue
1
First Page
16
Last Page
29
ISSN
0034-6535
DOI
10.1162/REST_a_00060
Keywords
job creation, small business
Repository Citation
Neumark, David; Wall, Brandon; and Zhang, Junfu, "Do small businesses create more jobs? New evidence for the united states from the national establishment time series" (2011). Economics. 37.
https://commons.clarku.edu/faculty_economics/37
