Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series

Neumark, David; Wall, Brandon; Zhang, Junfu

doi:10.1162/rest_a_00060

Cited by 362 publications

(253 citation statements)

References 32 publications

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“…According to the well-known standard economic theory by Jovanovic (1982), younger firms create more demand for employment. In line with this finding, some relevant studies have empirically demonstrated what this theory states (Earle and Telegdy 2011;Neumark et al 2011;Haltiwanger et al 2013;Lawless 2014). However, this does not hold for firms older than 5 years, and it is worth noting that some studies have presented a contrary result (Huber et al 2012).…”

Section: Smes' Basic Factors and Job Creationsupporting

confidence: 57%

Association of SME and Government Policy Factors with the Creation of New Employment: Manufacturing Industry in Korea

Jang

2018

Social Sciences

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Abstract:The rise in unemployment is an important and urgent task to be tackled for the growth of economy in Korea. Although prior studies have revealed some factors leading to the creation of employment, studies simultaneously considering various factors, such as small and medium enterprises' (SMEs') basic factors, technology innovation activities, innovation capabilities, and the government policies, have been limited. This study seeks to design an integrated model that focuses on both SME and government policy factors associated with the creation of new employment. For this, we use the Korea Innovation Survey (KIS) data on 2828 firms in the manufacturing industry in Korea for 2013-2015. Using the multivariate regression model, we identified the association of SME and the government policy factors on the creation of employment. We show that sales, product innovation, organization innovation, and the support program by the government contributed to the job creation, whereas a firm's age had a negative correlation with the creation of employment. The statistical results and discussion of our findings facilitate a better understanding of the association between various SMEs' factors and the creation of employment, and therefore, should help in designing better policies and strategies for employment growth.

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Section: Smes' Basic Factors and Job Creationsupporting

confidence: 57%

Association of SME and Government Policy Factors with the Creation of New Employment: Manufacturing Industry in Korea

Jang

2018

Social Sciences

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“…7 We use the distinction of the U.S. Census Bureau, according to which nonemployers are business units without paid employees. For firm-level analysis of employment dynamics including both employer and nonemployer firms see Davis et al (2009);Neumark et al (2011), whether Haltiwanger et al (2013) use only employer firms. Notice that we use here the same set of export data as those employed in Bernard et al (2015).…”

Section: Datamentioning

confidence: 99%

Small, young, and exporters: New evidence on the determinants of firm growth

Grazzi

Moschella

2017

J Evol Econ

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This work investigates how the export status of the firm influences the patterns of growth at different age classes. We address this research question resorting to a novel set of data that links together the universe of Italian firms and detailed data on export transactions. We find that the positive relationship between export status and growth declines with firm age. Further, we also find that, even when accounting for the role of age, the negative size-growth relationship does not disappear, contrary to some recent evidence. These results, which are robust to a series of controls, suggest for a positive signaling role of the export status which is stronger for young exporters or born globals. Exploiting the product-country level dimension of the customs data we also provide, for the first time, evidence on differences in exchange rates pass through between young and experienced exporters. In particular, we find that early exporters appear to be well equipped to face exchange rates variations as their exports decrease less following a currency appreciation.

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“…Small firms, however, also differ from large ones in a number of other ways. For instance, in comparison to large and old firms small businesses and new entrants are more likely to experience job losses (see, e.g., Bartelsman et al 2005, Voulgaris et al 2005, and Neumark et al 2011). This suggests a considerable volatility in the number of employees in small firms usually referred to as churning.…”

Section: Introductionmentioning

confidence: 99%

Job creation and the intra-distribution dynamics of the firm size distribution

Huber¹,

Oberhofer²,

Pfaffermayr³

2013

Industrial and Corporate Change

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractBased on a structural model for initial firm size, survival and firm growth we estimate firm-specific transition probabilities between size classes of the firm size distribution. This allows an assessment of the impact of different (counterfactual) economic policy measures on intra-distribution dynamics of the firm size distribution. We find that policies increasing the life span of firms reduce the exit hazard of young firms, but also reduce the probability to be a Gazelle. An increase in the industry-wide entry rate increases the exit hazards of incumbent firms and has no strong impact on the likelihood of firms to become Gazelles. Increasing market growth, by contrast, decreases the exit hazards for incumbent firms and slightly increases the likelihood of firms to be Gazelles. Finally, an increase in the birth size of firms increases the probability of young firms to be Gazelles with strongest effects for the smallest firms.

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Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series

Cited by 362 publications

References 32 publications

Association of SME and Government Policy Factors with the Creation of New Employment: Manufacturing Industry in Korea

Association of SME and Government Policy Factors with the Creation of New Employment: Manufacturing Industry in Korea

Small, young, and exporters: New evidence on the determinants of firm growth

Job creation and the intra-distribution dynamics of the firm size distribution

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