Regional unemployment structure and new firm formation

David B. Audretsch, Dirk Dohse and Annekatrin Niebuhr

No 1924, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Does regional unemployment increase or rather decrease entrepreneurial activity? Although this question has been hotly debated among researchers for decades the answers yielded so far are ambiguous and inconclusive. The paper proposes an innovative approach that takes not only interregional differences in unemployment rates, but also in unemployment duration and the human capital of the unemployed-i.e. in the structure of regional unemployment-into account. Both, the skill structure of the unemployed and the share of long-term unemployment are found to have an important impact on regional start-up activity. Moreover, the impact of unemployment structure on new firm formation is found to vary with the knowledge-intensity of the start-ups.

Keywords: regional unemployment; new business formation; skill structure; long-term unemployment (search for similar items in EconPapers)
JEL-codes: J64 M13 R12 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Regional unemployment structure and new firm formation (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1924

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