Small firms do not necessarily create “inferior jobs” as they have shares of part-time employees similar to those of large firms. About 21 percent of small firm workers were part-time in 2008, compared with 18 percent of large firm workers. 8 Small firms’ slightly higher share of part-time workers is not surprising; consider a firm that wants to increase employment by 25 percent; a firm with two employees would add one worker half-time, whereas a firm with 500 workers would add 125 workers full-time to achieve the same increase. .
