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Title:The link between firm births and job creation : is there a upas tree effect? PDF Logo
Authors:van Stel, André J.
Storey, David J.
Issue Date:2004
Series/Report no.:Papers on entrepreneurship, growth and public policy 3304
Abstract:This paper examines the relationship between firm births and job creation in Great Britain. We use a new data set for 60 British regions, covering the whole of Great Britain, between 1980 and 1998. The relationship between new-firm startups and employment growth has previously been examined either with no time-lag or with only a short period lag. We find, for GB as a whole, no significant relationship between startups and employment creation in the 1980s, but a negative relationship for the 'low enterprise' area of the North East of England. For the 1990s we find a significant positive relationship for GB as a whole but for Scotland, which focussed policy on startups, a negative relationship. We feel this raises questions over policies designed to raise rates of new firm formation as a strategy for employment creation, particularly in 'low enterprise' areas.
Subjects:new-firm startups
employment growth
entrepreneurship
Great Britain
JEL:M13
L10
J23
R11
Document Type:Working Paper
Appears in Collections:Discussion Papers on Entrepreneurship, Growth and Public Policy, MPI für Ökonomik

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