NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts

Steven J. Davis, John Haltiwanger, Scott Schuh

NBER Working Paper No. 4492
Issued in October 1993
NBER Program(s):   EFG   LS

This paper investigates how job creation and destruction behavior varies by employer size in the U.S. manufacturing sector during the period 1972 to 1988. The paper also evaluates the empirical basis for conventional claims about the job-creating prowess of small businesses. The chief findings and conclusions fall into five categories: (1) Conventional wisdom about the job-creating prowess of small businesses rests on misleading interpretations of the data. (2) 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. (3) Large plants and firms account for most newly-created and newly- destroyed manufacturing jobs. (4) Survival rates for new and existing manufacturing jobs increase sharply with employer size. (5) Smaller manufacturing firms and plants exhibit sharply higher gross rates of job creation but not higher net rates.

download in pdf format
   (1441 K)

download in djvu format
   (351 K)

email paper

This paper is available as PDF (1441 K) or DjVu (351 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4492

Published:

  • Labor Markets, Employment Policy and Job Creation. Lewis Solmon and Alec Levenson, eds. Westview Press, 1994. ,
  • Davis, Steven J., John Haltiwanger and Scott Schuh. "Small Business And Job Creation: Dissecting The Myth And Reassessing The Facts," Small Business Economics, 1996, v8(4,Aug), 297-315.

Users who downloaded this paper also downloaded these:
Haltiwanger, Jarmin, and Miranda w16300 Who Creates Jobs? Small vs. Large vs. Young
Neumark, Wall, and Zhang w13818 Do Small Businesses Create More Jobs? New Evidence from the National Establishment Time Series
Davis and Haltiwanger w3728 Gross Job Creation, Gross Job Destruction and Employment Reallocation
Beck, Demirguc-Kunt, and Levine w11224 SMEs, Growth, and Poverty
Hurst and Pugsley w17041 What Do Small Businesses Do?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

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

Contact Us