The BED method responds to the issue of “regression to the mean” or the tendency for a firm to revert to its relatively steady-state size after a shock of growth or decline. However, one could view the SUSB methodology of counting all of a growth or decline for a firm based on the start size as more appropriate. It is interesting to note that only a handful of firms cross the size threshold of 500 employees in any given year, and fewer still in a quarter; but these firms can have a discernible impact on net job creation.
