The effect of new business creation on employment growth in regions facing population decline

Heike Delfmann () and Sierdjan Koster ()
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Heike Delfmann: University of Groningen
Sierdjan Koster: University of Groningen

The Annals of Regional Science, 2016, vol. 56, issue 1, No 2, 33-54

Abstract: Abstract Particularly in declining regions, new businesses creation is seen as a means to secure (future) employment opportunities. However, the way in which new business creation exerts its influence on employment is not evident. Do start-ups in these areas influencing employment change as they do in growth regions? We disentangle the long- and short-term employment effect of new business creation in municipalities in the Netherlands between 1996 and 2010. We conclude that the regional context matters a great deal for the local employment effect of business creation. Further, it is shown in contexts with modest population decline, new businesses are still an important generator of employment opportunities.

JEL-codes: J23 L26 M13 O18 R11 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s00168-015-0738-1

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