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Who Creates Jobs? Small versus Large versus Young

John Haltiwanger1; Ron S. Jarmin2; Javier Miranda2

1 University of Maryland and NBER · 2 United States Census Bureau

The Review of Economics and Statistics 2013

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.

DOI
10.1162/rest_a_00288
Volume
95 (2)
Pages
347-361
Language
en
Export
BibTeX
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