years old) have, on average, accounted for all of US employment growth over the past few decades. New businesses are … especially important for youth employment. However, these businesses tend to borrow a lot, and the credit constraints they face …

and two-thirds of the additional hiring occurs within two months. The response of hiring from employment is twice as large … as the response of hiring from non-employment. Firms that are smaller, low-wage and fast-growing are associated with … employment, consistent with replacement hiring and the presence of vacancy chains. Growth in revenue and value added strongly …