The Relationship between Firm Births and Job Creation

André van Stel and David Storey
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David Storey: University of Warwick, and EIM Business and Policy Research, Zoetermeer

No 02-052/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper examines the relationship between firm births and job creation in Great Britain. We use a new data set for 60 British regions, covering the whole of Great Britain, between 1980 and 1998. The central theme of the paper is that, with the exception of a recent paper by Audretsch and Fritsch for Germany, the relationship between new-firm startups and employment growth has previously been examined either with no time-lag or with only a short period lag. The current paper examines short-run as well as long-run relationships and provides results for Great Britain similar to those for Germany. We find that the short-run employment impact of new-firm startups in British regions has been bigger in the 1990s compared to the 1980s. Concerning long-run effects, we find that the employment impact of new-firm startups is strongest after about five years, but the effect disappears after a decade.

Keywords: new-firm startups; employment growth; entrepreneurship; Great Britain. (search for similar items in EconPapers)
JEL-codes: J23 L10 M13 R11 (search for similar items in EconPapers)
Date: 2002-06-04
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020052

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