Birch index

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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]

David L. Birch is an American economist known for his pioneering work on small businesses.

Massachusetts Institute of Technology research university in Cambridge, Massachusetts, United States

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References

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