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Birch index

From Wikipedia, the free encyclopedia

The Birch (Employee Growth) Index is an economic indicator of employment. It multiplies absolute job growth by relative job growth, which reveals the employment-creation power of differently sized enterprises.

It was devised by economist David L. Birch at the Massachusetts Institute of Technology. In 1980 Birch published an influential study that showed 70% of job growth in the U.S. came from enterprises with fewer than 100 employees.[1]

References

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  1. ^ The Positive sum strategy: harnessing technology for economic growth, by Ralph Landau, Nathan Rosenberg, National Academy of Engineering, page 519