QUT ePrints

The extent of overestimation of small firm job creation: an empirical examination of the ‘regression bias’

Davidsson, Per, Lindmark, Leif, & Olofsson, Christer (1998) The extent of overestimation of small firm job creation: an empirical examination of the ‘regression bias’. Small Business Economics, 11(1), pp. 87-100.

View at publisher

Abstract

Davis, Haltiwanger & Schuh (1993; 1996) suggested that the belief that small firms are major contributors of new jobs is largely based on methodological flaws. In particular, their reasoning about the "regression fallacy", i.e., that temporary fluctuations in size systematically biases estimates in favour of small firm job creation, has caught on interest among researchers and concern among policy makers. In this article we attempt to estimate the extent of overestimation of small firm job creation due to the "regression fallacy". It is concluded that the effect is very small and that correcting for it does not lead to qualitative change of the results. There may be good reasons to question to what extent small firms can lead economic development, but concern for the "regression fallacy" does not seem to be an important issue in this context.

Impact and interest:

43 citations in Scopus
Search Google Scholar™
22 citations in Web of Science®

Citation countsare sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

485 since deposited on 14 Dec 2006
78 in the past twelve months

Full-text downloadsdisplays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 5841
Item Type: Journal Article
Keywords: Per Davidsson, small firm employment, small firm research
DOI: 10.1023/A:1016543211612
ISSN: 1573-0913
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Small Business Management (150314)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Innovation and Technology Management (150307)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 1998 Springer
Copyright Statement: The original publication is available at SpringerLink http://www.springerlink.com
Deposited On: 14 Dec 2006
Last Modified: 05 Jan 2011 23:29

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page