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.
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.
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|Item Type:||Journal Article|
|Keywords:||Per Davidsson, small firm employment, small firm research|
|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|
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