Start-Ups and Employment Growth - Evidence from Sweden

Martin Andersson () and Florian Noseleit ()

No 2008-091, Jena Economic Research Papers in Economics from Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek

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.

Keywords: Entrepreneurship; Employment Growth; Regional Development; Start-ups (search for similar items in EconPapers)
JEL-codes: J23 M13 O52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eec, nep-ent, nep-geo and nep-lab
Date: 2008-12-09

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Working Paper: Start-Ups and Employment Growth - Evidence from Sweden (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:jrp:jrpwrp:2008-091

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