Small business job creation hypothesis in Taiwan

Small business job creation hypothesis in Taiwan This paper explores the so-called small business job creation hypothesis. There are several significant findings. Firstly, we found that the base-size and current-size measures produce different results for the net job creation rate which is consistent with the results published by Davis et al. (Small Bus Econ, 8(4):297–315, 1996a, Job creation and destruction. MIT Press, Cambridge, MA, 1996b). These discrepancies suggest that further investigation of the extent of bias in the calculation of gross and net job flows for small business was warranted. Secondly, we also discovered that the number of inter-class plants is small. However, a large percentage of job creation and destruction is due to inter-class plants which suggest that the use of the base-size measure may involve significant regression bias. Thirdly, we discovered that in terms of job creation and destruction shares, the extent of regression bias of small business should be treated with caution. Finally, we found that the current-size measure largely addresses regression bias with respect to job creation and destruction treated separately. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Quality & Quantity Springer Journals

Small business job creation hypothesis in Taiwan

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Publisher
Springer Netherlands
Copyright
Copyright © 2011 by Springer Science+Business Media B.V.
Subject
Social Sciences, general; Methodology of the Social Sciences; Social Sciences, general
ISSN
0033-5177
eISSN
1573-7845
D.O.I.
10.1007/s11135-011-9602-2
Publisher site
See Article on Publisher Site

Abstract

This paper explores the so-called small business job creation hypothesis. There are several significant findings. Firstly, we found that the base-size and current-size measures produce different results for the net job creation rate which is consistent with the results published by Davis et al. (Small Bus Econ, 8(4):297–315, 1996a, Job creation and destruction. MIT Press, Cambridge, MA, 1996b). These discrepancies suggest that further investigation of the extent of bias in the calculation of gross and net job flows for small business was warranted. Secondly, we also discovered that the number of inter-class plants is small. However, a large percentage of job creation and destruction is due to inter-class plants which suggest that the use of the base-size measure may involve significant regression bias. Thirdly, we discovered that in terms of job creation and destruction shares, the extent of regression bias of small business should be treated with caution. Finally, we found that the current-size measure largely addresses regression bias with respect to job creation and destruction treated separately.

Journal

Quality & QuantitySpringer Journals

Published: Sep 14, 2011

References

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