Who Creates Jobs? Small Vs. Large Vs. Young

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, the authors explore the many issues regarding the role of firm size and growth that have been at the core of this ongoing debate.