Capital Market Institutions and Venture Capital: Do They Affect Unemployment and Labour Demand?

Rainer Fehn and Thomas Fuchs

No 898, CESifo Working Paper Series from CESifo

Abstract: This paper analyses the influence of the capital market on the labour market. Especially the impact of start-up financing on the structure of unemployment is of interest. We use a cross-country panel data analysis to examine how venture capital investment influences disaggre-gate unemployment. As we expected, venture capital investment has different influences on sectoral-, educational- and occupational-specific unemployment. We suggest, on the basis of the regression results that venture capital investment is a catalyst of structural change and has contributed to the faster growing internet and new economy sector in countries like the U.S. that have a well-developed venture capital market.

Keywords: Labor markets; venture capital; employment; new economy; panel analysis (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-mfd
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_898

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