NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Who Creates Jobs? Small vs. Large vs. Young

John C. Haltiwanger, Ron S. Jarmin, Javier Miranda

NBER Working Paper No. 16300
Issued in August 2010
NBER Program(s):   EFG   LS   PR

The view that small businesses create the most jobs remains appealing to policymakers and small business advocates. Using data from the Census Bureau 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 startups and young businesses in U.S. job creation.

download in pdf format
   (948 K)

email paper

A non-technical summary of this paper is available in the February 2011 NBER digest.  You can sign up to receive the NBER Digest by email.

This paper is available as PDF (948 K) or via email.

This paper was revised on November 20, 2012

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this paper also downloaded these:
Braguinsky, Branstetter, and Regateiro w17265 The Incredible Shrinking Portuguese Firm
Hurst and Pugsley w17041 What Do Small Businesses Do?
Davis, Faberman, and Haltiwanger w16265 The Establishment-Level Behavior of Vacancies and Hiring
Haltiwanger, Scarpetta, and Schweiger w13920 Assessing Job Flows Across Countries: The Role of Industry, Firm Size and Regulations
Gordon and Krenn w16380 The End of the Great Depression 1939-41: Policy Contributions and Fiscal Multipliers
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us