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Title:Start-ups and employment growth: evidence from Sweden PDF Logo
Authors:Andersson, Martin
Noseleit, Florian
Issue Date:2008
Series/Report no.:Jena economic research papers 2008,091
Abstract:We use longitudinal data over a decade on start-ups and employment in Swedish regions and analyze the effect of start-ups on subsequent employment growth. We extend previous analyses by examining the influence of regional start-ups in a sector on regional employment growth in the same sector and on other sectors. We find differences between different types of start-ups. Knowledge-intensive start-ups seem to have larger effects on the regional economy. In particular, start-ups in high-end services have significant negative impacts on employment in other sectors but a positive long-run impact. This is consistent with the idea that start-ups are a vehicle for changes in the composition of regional industry. Moreover, our results illustrate that the known S-shaped pattern can be attributed to different effects that start-ups in a sector have on employment change in the same sector and in others.
Subjects:Entrepreneurship
employment growth
regional development
start-ups
JEL:J23
M13
O52
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

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