Davis, Haltiwanger & Schuh (1993; 1996) suggested that the belief that small firms are major contributors of new jobs is largely based on methodological flaws. In particular, their reasoning about the "regression fallacy", i.e., that temporary fluctuations in size systematically biases estimates in...

This paper reports on a comprehensive study of the role of SMEs for job creation and regional economic well-being in Sweden during the 1990-93 recession period as well as the years immediately preceding and following that period. It is found that SMEs were over-represented as job creators across...