Recent Research: Who Creates More Jobs, Small or Young Businesses?
It is often taken for granted that small businesses are the primary vehicle of employment growth in the private sector. While this is debated, academics have struggled to demonstrate a strong inverse relationship between firm size and job creation. A recent paper by John Haltiwanger of the University of Maryland and Ron S. Jarmin and Javier Miranda of the U.S. Census Bureau shows that once the data is adjusted to account for firm age, there appears to be no systematic relationship between firm size and growth.