publication . Article . Other literature type . Preprint . 2013

Do small businesses create more jobs? New evidence for Europe

Jan de Kok; Gerrit de Wit;
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  • Published: 28 Apr 2013 Journal: Small Business Economics, volume 42, pages 283-295 (issn: 0921-898X, eissn: 1573-0913, Copyright policy)
  • Publisher: Springer Science and Business Media LLC
Abstract
In this paper, we argue why, in our view, the so-called dynamic classification method should be favored when determining the contribution of small businesses towards job creation. First, it is the only method that consistently attributes job creation or loss to the size class in which it actually occurs. In addition, dynamic classification has two other advantages: (1) it is not vulnerable to the so-called regression to the mean bias, and (2) only a small number of aggregated data are required for its application. Using the dynamic classification, we analyze job creation within the different size classes for the 27 Member States of the European Union. Our main f...
Subjects
free text keywords: Economics and Econometrics, General Business, Management and Accounting, Economics, Manufacturing, business.industry, business, Entrepreneurship, European union, media_common.cataloged_instance, media_common, Small number, Labour economics, Finance, Marketing, Job creation
60 references, page 1 of 4

Total (C-I, K) 3.1% 1.6% 1.3% 1.0% 1.8%

The non-financial business economy of the EU includes sections C -I and K of the NACE rev. 1.1 classification of economic activities. The wholesale and retail trade (G) includes repair of motor vehicles, motorcycles and personal and household goods.

Source: Own calculations, based on the database for the Annual Report 2009 (for the years 2002-2004) and the database for the Annual Report 2010/2011 (for the years 2005-2008).

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