50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden
When a new firm is established additional employees needs to be recruited if the firm is to expand its business beyond the founder of the company. This causes labor dynamics since these employees need to be recruited, either from already existing firms, from firms closing down their business or from people entering the labor force. Entry into the labor force occurs, for example, when young individuals get their first job or when a previously unemployed person receives a new job. The aim of the paper is to study the role of labor mobility in relation to new firms. Who do new firms employ? Are employees in new firms recruited from incumbent firms, exiting firm or entrants into the labor market? What are the patters of labor mobility among employees in new firms?