Small business has captured the imagination of both the popular
press and politicians. The tradition that has created sympathy for
the small entrepreneur has been strengthened in recent years by
images of small firms as dynamic, growing, and flexible and of
large firms as struggling, outdated, and intractable in the face of
changing competitive environments. There is, it appears, an added
fervor for America's support of "the little guy."
"Employers Large and Small" draws on existing data and new
research to create a more complete picture of the roles of large
and small employers, challenging much of the conventional wisdom.
It argues that the oft-cited achievement of small firms in
generating new jobs is primarily a reflection of the fact that
industries in which the typical firm is small have grown rapidly in
recent years.
The authors show that there are striking differences between
large and small employers--that in fact large employers pay higher
wages, offer better fringe benefits, and on average offer a more
attractive package of working conditions and compensation. These
differences reflect real challenges faced by small firms: they pay
more for their nonlabor inputs and for many fringe benefits if they
choose to offer them.
"Employers Large and Small" also goes beyond the workplace,
examining the role of large and small employers in politics.
Despite the typical portrayal of small business as the underdog in
policy disputes, the political resources of small employers are
substantial. The PAC contributions of small business, for example,
are as large as those of labor unions and nearly two-thirds those
of big business.
The authors show that the economic andpolitical differences
between large and small employers are sizable, are significant
influences in the working lives of Americans, and are at odds with
current policy assumptions.
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