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Title Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing
Author Matthew Barnes, Jonathan Haskel
Year 2002
Abstract We use the ARD micro level data set for UK manufacturing to document job creation and job destruction (JC&D). Due to data limitations, previous UK studies were unable to use entry and exit in calculations of JC&D and/or were are at the firm rather than establishment/plant level and/or used data that understate the number of small businesses in the economy. Our data can overcome these problems being based on plant and establishment-level data from the UK Census of Production. We compute JC&D levels and rates and the contribution of small businesses for UK manufacturing between 1980 and 1991 and compare our findings with previous UK studies and other countries. We find: a) establishment (plant) job creation and destruction rates of 10.0% and 13.5% (11.2% and 14.7%) respectively, higher than other studies; b) large establishments (plants) are responsible for about 60% (55%) of job destruction; and c) small establishments (plants) are responsible for between 50% and 68% (57% and 70%) of job creation, depending on calculation method.
Remarks Reference:
Matthew Barnes & Jonathan Haskel, 2002.
"Job Creation, Job Destruction and the Contribution of Small Businesses: Evidence for UK Manufacturing,"
Working Papers 461, Queen Mary, University of London, Department of Economics.

*NOTE*: Updated data for services as well as manufacturing using a new version of the microdata used in this paper is available by Richard Upward, Nottingham
Topic revision: r1 - 07 Jan 2007, JonathanHaskel

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