Proceedings of the New York State Economics Association


Do Small Businesses Create More Jobs? Evidence for New York State from Quarterly Workforce Indicators

Arindam Mandal and Mankirat Singh

vol. 7, October 2014, p. 119-130


The view that small businesses create the most jobs remains appealing to policymakers and small business advocates in the U.S. While early empirical studies provided support for this perception, a variety of subsequent empirical studies have highlighted statistical and measurement pitfalls underlying much of the evidence in support of this perception. Some of these shortcomings were driven by lack of availability of suitable data to properly measure the impact of small businesses on job creation. In this paper, we have used relatively new dataset -- Longitudinal Household-Employer Dynamics or Quarterly Workforce Indicators -- to revisit the debate on the role of small businesses in job creation in New York State. We find strong evidence that in New York State, small businesses play an important role in overall job creation. However, along with small businesses, large businesses and age of firms also plays an important role in overall job creation.


suggested citation:

Arindam Mandal and Mankirat Singh. "Do Small Businesses Create More Jobs? Evidence for New York State from Quarterly Workforce Indicators." Proceedings of the New York State Economics Association. vol. 7, October 2014, p. 119-130

BibTeX entry    download