Start-ups and Job Creation

There was a lengthy and pointless debate that began in the early 90s over what sized businesses created the most jobs. The original story was that small businesses created the most jobs. This turned out not to be true on more careful investigation, since small businesses also lost the most jobs. There were various twists and turns in the academic literature before most economists came to the conclusion that businesses of all sizes on net create jobs at roughly the same rate.

While this debate...