The Secret to Job Growth: Think Small

With job growth continuing to lag even as the economy picks up, local communities will be tempted to resume “smokestack chasing”—using tax breaks to attract big employers. That’s a misguided approach. Our research shows that regional economic growth is highly correlated with the presence of many small, entrepreneurial employers—not a few big ones. In fact, […]

by

Edward L. Glaeser

and

William Kerr

by

Edward L. Glaeser

and

William Kerr

From the Magazine (July–August 2010)

With job growth continuing to lag even as the economy picks up, local communities will be tempted to resume “smokestack chasing”—using tax breaks to attract big employers. That’s a misguided approach.

A version of this article appeared in the July–August 2010 issue of Harvard Business Review.

Edward L. Glaeser is the Fred and Eleanor Glimp Professor of Economics at Harvard.
William Kerr is a professor at Harvard Business school and Co-director of Harvard’s Managing the Future of Work project.

The Secret to Job Growth: Think Small

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