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Firm age and job creation in the US

Author

Listed:
  • Henry R. Hyatt

    (US Census Bureau, USA, and IZA, Germany)

Abstract

Entrepreneurship is essential for a healthy labor market. Recent evidence shows that young businesses (at most ten years old) have, on average, accounted for all of US employment growth over the past few decades. New businesses are especially important for youth employment. However, these businesses tend to borrow a lot, and the credit constraints they face limit their ability to create jobs. Historically, much of the discussion regarding the economic importance of entrepreneurship has focused on small businesses. Empirical evidence increasingly suggests that, among small businesses, those that are young create the most jobs.

Suggested Citation

  • Henry R. Hyatt, 2022. "Firm age and job creation in the US," IZA World of Labor, Institute of Labor Economics (IZA), pages 501-501, November.
    • Handle: RePEc:iza:izawol:journl:2022:n:501
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    References listed on IDEAS

    as
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    5. Ayyagari, Meghana & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2011. "Small vs. young firms across the world : contribution to employment, job creation, and growth," Policy Research Working Paper Series 5631, The World Bank.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    entrepreneurship; employment; start-up; firm age; firm size; firm growth;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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