Small business and job creation: Dissecting the myth and reassessing the facts
- Steven J. DavisAffiliated withNational Bureau of Economic Research, University of Chicago
- , John HaltiwangerAffiliated withNational Bureau of Economic Research, University of Maryland
- , Scott SchuhAffiliated withFederal Reserve Board
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Conventional wisdom about the job-creating prowess of small businesses rests on misleading interpretations of the data.
Many previous studies of the job creation process rely upon data that are not suitable for drawing inferences about the relationship between employer size and job creation.
Large plants and firms account for most newly-created and newly-destroyed manufacturing jobs.
Survival rates for new and existing manufacturing jobs increase sharply with employer size.
Smaller manufacturing firms and plants exhibit sharply higher gross rates of job creation but not higher net rates.
- Small business and job creation: Dissecting the myth and reassessing the facts
Small Business Economics
Volume 8, Issue 4 , pp 297-315
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