Who Creates Jobs?

By E. Ghani, William R. Kerr, Stephen D. O'Connell. 2011

550 citations recorded by the source corpus.

There is a consensus that jobs are vital in translating economic growth into lasting poverty reduction and social cohesion. But who creates jobs is an understudied field. This economic premise argues that there is a strong link between initial levels of young and small firms and subsequent job growth, as evidenced in India. The economic geography of entrepreneurship in India is still evolving. It is worrying that there are too few entrepreneurs in India for its stage of development. Yet there is no question that entrepreneurship works cities and states that have embraced entrepreneurship have created more jobs. However, the link between entrepreneurship and job growth is not automatic. Cities that have a higher quality of physical infrastructure and a more educated workforce attract many more entrepreneurs. Supportive incumbent industrial structures for input and output markets are strongly linked to higher entrepreneurship rates. There are many policy levers that can be used by policy makers to promote entrepreneurial growth. Instead of being preoccupied with firm chasing attracting large mature firms from other locations policy makers should focus on encouraging entrepreneurship in their communities.

Subfields: Economics and Econometrics, General Health Professions, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/81643327810f3cea5b5330311ae6dce5b314f43f

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Citations in the corpus

Did firm age, experience, and access to finance count? SME performance after the global financial crisis (2018, background): “The seminal work by Haltiwanger et al (2013) attempts to reconcile the conflicting empirical findings.”
Everyday Entrepreneurship—A Call for Entrepreneurship Research to Embrace Entrepreneurial Diversity (2017, background): “It would be hard to overstate the impact of David Birch’s claims in the early 1980s about the predominant role of new ventures in creating jobs (Birch, 1981), and the extension of such arguments to claims that most such job generation was done by a handful of gazelles.”
Firm Dynamics, Productivity Growth, and Job Creation in Developing Countries: The Role of Micro- and Small Enterprises (2015, unknown): “Birch (1981, 1987) was the first to provide evidence in support of the standard claim for the United States. His methodology, however, was questioned on measurement and statistical grounds (Davis and Haltiwanger 1992). No systematic relationship between the net job creation rate and plant size in th”
Can Service Be a Growth Escalator in Low-Income Countries? (2014, background): “A strong link has been found between the initial levels of young and small firms and subsequent job growth (Ghani et al, 2011).”
Age or size? Contributions to job creation (2014, unknown): “(1) (2) (3) (4) (5) (6) All Firms All Firms Age<5 Age 5-10 Age 11-20 Age 20+ Panel A: Basic Specification Size -0.”