Document Type

Article

Publication Date

2006

Publication Source

Applied Business Review

Volume

March

Inclusive pages

N/A

Publisher

Christian Brothers University School of Business

Abstract

As policymakers search for ways to keep jobs in the United States and stem the drain of outsourcing, researchers once again return to the question of which type of business has been responsible for the majority of the jobs created in recent years? In other words, how can we leverage policy initiatives in ways which make a substantive difference in peoples’ employment opportunities? This study examines the recent job creation experience of the Midwest region. The results suggest that for each of the eight states that comprise the Midwest region, small businesses were a more potent engine for job creation than large businesses. The analysis also indicates that business taxes and educational attainment in a state were significant determinants of the number of jobs created. The implications of these findings are that priority should be given to small businesses when tax cuts are used to promote economic development. In addition, a public policy that aims to promote education will uniquely benefit small businesses and should thus be considered as a job creation policy.

Keywords

samavati, stumph, job creation, midwest

Disciplines

Economics

Included in

Economics Commons

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