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Is job creation dependent on the local context? An analysis of French industrial establishments over the period 2004-2010

Aziza Garsaa and Nadine Levratto ()

No 2014-49, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This paper seeks to shed some light on the relationship between individual performance and local context. We empirically address this question focusing on the employment growth rate of French manufacturing establishments geo-referenced at the employment area level, an economically consistent territorial division. Using an unbalanced panel of 149,929 plants over the period 2004-2010, we estimate different growth models including local specific variables controlled with company specific ones. The results confirm that the firm growth rate is influenced by the local context and that some features such as unemployment, agglomeration effects or skills matter significantly. The robustness checks performed on subsamples, however, show that the profile of the areas or the market (local or larger) may significantly affect the intensity of the link between a firm and its environment.

Keywords: firm growth; geographical location; manufacturing industry; panel data. (search for similar items in EconPapers)
JEL-codes: L25 R11 C23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-eur, nep-geo, nep-lab, nep-sbm and nep-ure
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2014-49

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