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Establishment Size and Local Employment Growth

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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.

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Authors and Affiliations

  1. Department of Economics and Finance (Dept. 3985), University of Wyoming, 1000 E. University Ave., Laramie, WY, 82071, U.S.A.

    Sherrill Shaffer

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  1. Sherrill Shaffer
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Correspondence to Sherrill Shaffer.

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Shaffer, S. Establishment Size and Local Employment Growth. Small Bus Econ 26, 439–454 (2006). https://doi.org/10.1007/s11187-005-5598-0

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  • DOI: https://doi.org/10.1007/s11187-005-5598-0

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