JOB GENERATION AND NEW AND SMALL FIRMS - SOME EVIDENCE FROM THE LATE 1980S

This paper adopts a components of employment change methodology and ex amines the process of job generation in the late 1980s for three contr asting regions of the United Kingdom. The emphasis in the analysis is on the contribution of new and small firms to regional manufacturing e mployment growth. The results indicate the important role of new and s mall indigenous firms in the job generation process, particularly in N orthern Ireland, in the period 1986-90. However, the level of displace ment associated with these job creations is sufficiently high to cause concern about the longterm sustainability of these trends. The paper concludes by arguing that policies designed to stimulate new firm form ation and small firm growth are not in themselves sufficient to promot e growth.