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|Title:||The link between firm births and job creation : is there a upas tree effect? |
|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.|
|Document Type:||Working Paper|
|Appears in Collections:||Discussion Papers on Entrepreneurship, Growth and Public Policy, Max-Planck-Institut für Ökonomik|
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