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Small Business Employment in the Pandemic Era and Beyond
Abstract: In this article, we study the creation of small firms, with a focus on the post-March 2020 period (i.e., after the start of the global Covid-19 pandemic).1 We document the increase in new small firms, as well as the contributions of small firms to employment growth, during this period. Our analysis shows that, despite the increase in the number of small businesses, the share of employees working for small firms is considerably lower than in large businesses and is, in fact, declining.
JEL Classification: L25; J23; M13; E32;
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Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Chicago Fed Letter
Publication Date: 2025-08
Volume: 509
Pages: 10