Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland
AbstractThis paper aims to provide a comprehensive insight into the role that unemployment plays in influencing new firm formation. Panel data models and micro-level data are used to help achieve this objective. We endeavor to identify simultaneously the separate effects of personal, regional and national unemployment on new firm formation in Finland for the period 1987-1995. The results indicate considerable evidence for a positive and non-linear effect of personal unemployment on the likelihood of an individual to become an entrepreneur. The findings also indicate that the economic situation has an effect on firm formation: times of low unemployment and business prosperity favor entrepreneurship. On the other hand, the analysis gives no clear evidence of the regional unemployment situation affecting the likelihood of founding a business. Copyright 2002 by Kluwer Academic Publishers
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 19 (2002)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100338
Other versions of this item:
- Tervo, Hannu & Ritsilä, Jari, 2000. "Effects Of Unemployment On New Firm Formation:Micro-Level Panel Data Evidence From Finland," ERSA conference papers ersa00p88, European Regional Science Association.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
- Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
- G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
- Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
- Moulton, Brent R & Randolph, William C, 1989. "Alternative Tests of the Error Components Model," Econometrica, Econometric Society, vol. 57(3), pages 685-93, May.
- Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
- Nicolaou, Nicos & Shane, Scott, 2009. "Can genetic factors influence the likelihood of engaging in entrepreneurial activity?," Journal of Business Venturing, Elsevier, vol. 24(1), pages 1-22, January.
- Svaleryd, Helena, 2013.
"Self-employment and the local business cycle,"
Working Paper Series
2013:15, Uppsala University, Department of Economics.
- Svaleryd, Helena, 2013. "Self-employment and the local business cycle," Working Paper Series, Center for Labor Studies 2013:9, Uppsala University, Department of Economics.
- Svaleryd, Helena, 2013. "Self-employment and the local business cycle," Working Paper Series 2013:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Hannu Tervo & Hannu Niittykangas, 2011. "Self-employment transitions at older ages in different local labor markets," ERSA conference papers ersa11p764, European Regional Science Association.
- Mann, Stefan & Mante, Juliane, 2004. "Of Farmers And Butchers - Comparing The Determinants Of Exit In Shrinking Sectors," Working Papers 30708, Agroscope Reckenholz Tanikon (ART).
- Mª Olga González Morales & Flora Mª Díaz Pérez & José Antonio Álvarez González, 2011. "Nivel educativo y empleo en el periodo 2005-2009: Un análisis comparado entre la población ocupada española y extranjera," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 45, pages 719-736 Asociación de Economía de la Educación.
- Michele Cincera & Henri Capron, 2012.
"Capital humain et processus de création d’entreprise: Le cas des primo-créateurs wallons,"
ULB Institutional Repository
2013/147102, ULB -- Universite Libre de Bruxelles.
- Michele Cincera & Lydia Greunz & Jean-Luc Guyot & Olivier Lohest, 2006. "Capital humain et processus de création d'entreprise: le cas des primo-créateurs wallons," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 49(2).
- Michele Cincera & Lydia Greunz & Jean-Luc Guyot & Olivier Lohest, 2006. "Capital humain et processus de création d'entreprise: le cas des primo-créateurs wallons," DULBEA Working Papers 06-11.RS, ULB -- Universite Libre de Bruxelles.
- Stephan Goetz & Anil Rupasingha, 2009. "Determinants of growth in non-farm proprietor densities in the US, 1990–2000," Small Business Economics, Springer, vol. 32(4), pages 425-438, April.
- Heinrichs, Simon & Walter, Sascha, 2013. "Who Becomes an Entrepreneur? A 30-Years-Review of Individual-Level Research and an Agenda for Future Research," EconStor Preprints 68590, ZBW - German National Library of Economics.
- Calá, Carla Daniela & Arauzo-Carod, Josep-Maria & Manjón-Antolín, Miguel, 2012.
"Regional determinants of firm entry in a developing country,"
NÃ¼lan. Deposited Documents
1626, Centro de Documentación, Facultad de Ciencias Económicas y Sociales, Universidad Nacional de Mar del Plata.
- Calá, Carla Daniela & Arauzo Carod, Josep Maria & Manjón Antolín, Miguel C., 2012. "Regional Determinants of Firm Entry in a Developing Country," Working Papers 2072/203159, Universitat Rovira i Virgili, Department of Economics.
- Schanne, Norbert & Weyh, Antje, 2009. "What makes start-ups out of unemployment different?," IAB Discussion Paper 200904, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Hannu Tervo & Mika Haapanen, 2005.
"Self-employment duration in urban and rural locations,"
ERSA conference papers
ersa05p315, European Regional Science Association.
- Mika Haapanen & Hannu Tervo, 2009. "Self-employment duration in urban and rural locations," Applied Economics, Taylor and Francis Journals, vol. 41(19), pages 2449-2461.
- Arauzo Carod, Josep Maria & Teruel Carrizosa, Mercedes, 2004. "A territorial approach to firm entry: The effect of city size," Working Papers 2072/1777, Universitat Rovira i Virgili, Department of Economics.
- Hannu Tervo, 2004. "Self-employment dynamics in rural and urban labour markets," ERSA conference papers ersa04p396, European Regional Science Association.
- Koelewijn, Wout T. & Ehrenhard, Michel L. & Groen, Aard J. & van Harten, Wim H., 2012. "Intra-organizational dynamics as drivers of entrepreneurship among physicians and managers in hospitals of western countries," Social Science & Medicine, Elsevier, vol. 75(5), pages 795-800.
- Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
- Hannu Niittykangas & Hannu Tervo, 2005. "Spatial variations in intergenerational transmission of self-employment," Regional Studies, Taylor and Francis Journals, vol. 39(3), pages 319-332.
- Stephan Brunow & Peter Nijkamp, 2013. "Firm Formation and Agglomeration under Monopolistic Competition," Tinbergen Institute Discussion Papers 13-134/VIII, Tinbergen Institute.
- Hannu Tervo, 2006. "Regional unemployment, self-employment and family background," Applied Economics, Taylor and Francis Journals, vol. 38(9), pages 1055-1062.
- Niittykangas, Hannu & Tervo, Hannu, 2002. "Intergenerational mobility in self-employment: a regional approach," ERSA conference papers ersa02p350, European Regional Science Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.