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on Entrepreneurship |
| By: | John Haltiwanger; Ron S. Jarmin; Javier Miranda |
| Abstract: | There’s been a long, sometimes heated, debate on the role of firm size in employment growth. Despite skepticism in the academic community, the notion that growth is negatively related to firm size remains appealing to policymakers and small business advocates. The widespread and repeated claim from this community is that most new jobs are created by small businesses. Using data from the Census Bureau Business Dynamics Statistics and Longitudinal Business Database, we explore the many issues regarding the role of firm size and growth that have been at the core of this ongoing debate (such as the role of regression to the mean). We find that the relationship between firm size and employment growth is sensitive to these issues. However, our main finding is that once we control for firm age there is no systematic relationship between firm size and growth. Our findings highlight the important role of business startups and young businesses in U.S. job creation. Business startups contribute substantially to both gross and net job creation. In addition, we find an “up or out” dynamic of young firms. These findings imply that it is critical to control for and understand the role of firm age in explaining U.S. job creation. |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:10-17&r=ent |
| By: | Philip DeCicca (McMaster University) |
| Abstract: | Despite a strong interest in entrepreneurship, economists have devoted little attention to the role of health insurance availability. I investigate the impact of a unique policy experiment—New Jersey’s Individual Health Coverage Plan—on self-employment. Implemented in August 1993, the IHCP included an extensive set of reforms that loosened the historical connection between traditional employment and health insurance by facilitating access to coverage that was not employer-linked. I find evidence that the IHCP increased self-employment among New Jersey residents, relative to various sets of comparison states. Consistent with key policy features, including pure community rating of premiums, I find larger behavioral responses for unmarried, older, and observably less-healthy individuals. |
| Keywords: | Health Insurance, Entrepreneurship, Job Lock |
| JEL: | I18 J32 J62 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:upj:weupjo:10-167&r=ent |
| By: | Emin M. Dinlersoz; Mehmet Yorukoglu |
| Abstract: | This paper develops a dynamic industry model in which firms compete to acquire customers over time by disseminating information about themselves under the presence of random shocks to their efficiency. The properties of the model’s stationary equilibrium are related to empirical regularities on firm and industry dynamics. As an application of the model, the effects of a decline in the cost of information dissemination on firm and industry dynamics are explored. |
| Keywords: | Information, industry dynamics, entry and exit, firm growth |
| JEL: | D80 L11 L16 M37 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:10-16&r=ent |