Small Business Economics

, Volume 7, Issue 6, pp 469–474 | Cite as

Firm size and job creation in Germany

  • Joachim Wagner


This paper reports new results on the role of firms from various size classes in the job generation process in Germany. It is based on a unique longitudinal data set covering all manufacturing establishments that existed in at least one year between 1978 and 1993 in the German federal state Lower Saxony. We find that gross job creation and destruction rates tend to decline with firm size, while net job creation rates and firm size are not systematically related when firms are classified according to their average number of employees in the base and end year. Small firms create (destroy) quite a large share of all new (lost) jobs.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Berney, Robert E. and Bruce D. Phillips, 1995, ‘Small Business and Job Creation: An Update’, Paper presented at the conference on Dynamics of Employment and Industry Evolution, University of Mannheim/Germany, January 19–21.Google Scholar
  2. Birch, David L., 1981, ‘Who Creates Jobs?’,The Public Interest 65, 3–14.Google Scholar
  3. Birch, David L., 1987,Job Creation in America, New York and London: The Free Press.Google Scholar
  4. Davis, Steven J., John Haltiwanger and Scott Schuh, 1996, ‘Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts’,Small Business Economics 8 (in press).Google Scholar
  5. Methner, Eckardt, 1992, ‘Das Erhebungsprogramm der amtlichen Statistik im Bereich des Produzierenden Gewerbes’, in Rainer Ertel and Joachim Wagner (eds.),Produzieren in Niedersachsen — Empirische Untersuchungen mit Betriebsdaten, Hannover: NIW.Google Scholar
  6. Wagner, Joachim, 1992, ‘Firm Size, Firm Growth, and Persistence of Chance: Testing GIBRAT's Law with Establishment Data from Lower Saxony, 1978–1989’,Small Business Economics 4, 125–131.Google Scholar

Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Joachim Wagner
    • 1
  1. 1.University of LueneburgLüneburgGermany

Personalised recommendations