By D.J. Storey, Stanley Johnson
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Extra resources for Job Generation and Labour Market Change
All that can justifiably be inferred is that there is no clear relationship between the performance of an economy in terms of job creation/unemployment reduction and the size structure of its employment units. If anything our analysis suggests that Britain and Japan are closer to being 'special' cases, rather than being at opposite ends of a continuous relationship. 7 SELF-EMPLOYMENT In several major developed countries interest in self-employment has paralleled interest in the role of small businesses as a major source of job creation.
The key question is whether these changes are a single response to a common set of pressures or whether they are individual responses by firms and governments within those countries which coincidentally happen to have resulted in an increased share of small firm employment. It is imperative to reach a judgement on such matters before implementing public policy in this area. Five possible 'explanations' have been provided for these developments. First it is suggested that the increased relative importance of small enterprises in developed economies as a whole is a reflection of the growing importance of the Service Sector - where average enterprise size tends to be smaller - at the expense of manufacturing - where average enterprise size tends to be larger.
A. A. J>. 3 presents data on the proportion of total manufacturing employment in small enterprises (generally with less than 20 workers), over the period 1970-83. These data are presented in the upper row for each country. Some data are available for each of twelve countries over that time but only for Japan are data available for each year. At the other extreme, data for both Austria and the United States are available for only two of these years. Furthermore, data for small enterprises are not available for the United Kingdom and data for large enterprises shown in the lower row of the table are not available for the Netherlands.
Job Generation and Labour Market Change by D.J. Storey, Stanley Johnson
Categories: Labor Industrial Relations