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Establishment Size and Local Employment Growth

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  • Sherrill Shaffer

Abstract

In a sample of more than 2000 U.S. counties, smaller average establishment size is generally associated with faster subsequent growth rates of sectoral employment, both within and across sectors. The estimated effects are large in magnitude and thus economically important, and are consistent with several theories previously developed. These findings contribute toward a more precise understanding of the role of small businesses in economic growth and labor markets. Copyright Springer 2006

Suggested Citation

  • Sherrill Shaffer, 2006. "Establishment Size and Local Employment Growth," Small Business Economics, Springer, vol. 26(5), pages 439-454, June.
    • Handle: RePEc:kap:sbusec:v:26:y:2006:i:5:p:439-454
    DOI: 10.1007/s11187-005-5598-0
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    References listed on IDEAS

    as
    1. Andy Cosh & Alan Hughes & Melvyn Weeks, 2000. "The Relationship Between Training and Employment Growth in Small and Medium-Sized Enterprises," Working Papers wp188, Centre for Business Research, University of Cambridge.
    2. Jan Eeckhout & Boyan Jovanovic, 1998. "Inequality," NBER Working Papers 6841, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Deller, Steven C., 2007. "The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997," Staff Papers 92140, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    3. Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2015. "New Small Firms and Dimensions of Economic Performance," Economic Development Quarterly, , vol. 29(1), pages 65-78, February.
    4. Timothy Komarek & Scott Loveridge, 2015. "Firm Sizes And Economic Development: Estimating Long-Term Effects On U.S. County Growth, 1990–2000," Journal of Regional Science, Wiley Blackwell, vol. 55(2), pages 262-279, March.
    5. Sherrill Shaffer, 2009. "Industrial structure and economic stability," Applied Economics Letters, Taylor & Francis Journals, vol. 16(6), pages 549-555.
    6. Timothy M. Komarek & Scott Loveridge, 2014. "Too Big? Too Small? Just Right? An Empirical Perspective on Local Firm Size Distribution and Economic Growth in U.S. Counties and High-Poverty Rural Regions," Economic Development Quarterly, , vol. 28(1), pages 28-41, February.
    7. repec:zbw:bofrdp:2009_004 is not listed on IDEAS
    8. Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2015. "New Small Firms and Dimensions of Economic Performance," Economic Development Quarterly, , vol. 29(1), pages 65-78, February.
    9. Sherrill Shaffer, 2008. "Financial Performance Of Small Business Loans: Indirect Evidence," CAMA Working Papers 2008-28, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    10. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    Keywords

    establishment size; employment growth; J23; L11; O47;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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