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Title Firm Size and Job Creation in Korea: Do Small Businesses Create More Jobs?
Author Hanhyung Pyo (Korea Small Business Institute), Sungcheol Hong (Korea Small Business Institute) and Ahnjeong Kim (Korea Small Business Institute)
Volume 32 Number 1
Keywords Firm Size, Firm Age, Net Job Creation
Abstract Using the Census on Establishments data in Korea from 2003 to 2012, we study the
relationship between firm size and net job growth rate. When we use average size instead of
base year size without controlling for firm age, the effect does become weaker, but we still
observe a negative correlation between the two. However, when we control for firm age, the
negative correlation between firm size and net job growth rate becomes nonexistent, and in
some cases there is even a positive correlation. This is the same even when we use
establishment level data instead of firm level data.
File KER-20160630-31-1-06.pdf
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