Economics: Young Firms, Not Small Ones, Are the Engines of Job Growth

Small businesses are the engines of job growth. So the conventional wisdom goes.

A new paper, by John C. Haltiwanger, Ron S. Jarmin and Javier Miranda, challenges this view, arguing instead that start-ups and other young firms are the disproportionate source of new jobs.

"... our main finding is that once we control for firm age there is no systematic relationship between firm size and growth."

For more, see Young Firms, Not Small Ones, Are the Engines of Job Growth by Catherine Rampell, August 26, 2010, at Exonomix Blog, New York Times.