The Korean Economic Review
Firm Size and Job Creation in Korea: Do Small Businesses Create More Jobs?
Hanhyung Pyo (Korea Small Business Institute), Sungcheol Hong (Korea Small Business Institute), Ahnjeong Kim (Korea Small Business Institute)Year 2016Vol. 32No. 1
Using the Census on Establishments data in Korea from 2003 to 2012, we study therelationship between firm size and net job growth rate. When we use average size instead ofbase year size without controlling for firm age, the effect does become weaker, but we stillobserve a negative correlation between the two. However, when we control for firm age, thenegative correlation between firm size and net job growth rate becomes nonexistent, and insome cases there is even a positive correlation. This is the same even when we useestablishment level data instead of firm level data.