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Does Unemployment Affect the Number of Establishments? A Regional Analysis for US States

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  • Martin Carree

Abstract

Empirical tests of the 'unemployment push' hypothesis that unemployed workers start up new enterprises to a greater extent than employed workers to escape unemployment have produced contradictory results. This is at least partially a consequence of studies neglecting the industrial organization of regions and not incorporating adequate variables to represent market opportunities. Using data of US establishments in retail and service industries with low entry barriers, we find little or no evidence for the 'unemployment push' hypothesis. US regions with relatively high unemployment rates do not show relatively strong subsequent increases in the number of establishments across a broad range of industries. Possible exceptions are used merchandise stores and automotive repair shops. Des tests empiriques de l'hypothese qui affirme que la creation d'entreprise s'explique plutot par les chomeurs que par les actifs occupes afin de permettre aces gens-lade contourner le chomage, ont realise des reultats contradictoires. Cela s'explique du moins en partie par le fait que des etudes n'ont pas considere la structure industrielle des regions et n'ont pas incorporedes variables suffisantes pour representer les possibilites offertes par le marche. A partir des donnees aupres des etablissments dans le commerce et les services dont les barrieres a l'entree sont tres basses, il s'avere presque pas de preuves a l'appui de cet hypothese. Les regions aux Etats-Unis dont le taux de chomage est relativement elevene montrent pas d'augmentations ulterieures relativement fortes du nombre d'etablissements atravers des industries diverses. A quelques exceptions pres, asavoir les vendeurs d'objets d'occasion et les ateliers de reparation automobile. Empirische Untersuchungen der Hypothese des Anstosses, den Erwerbslosigkeit gibt, neue Unternehmen aufzuziehen, indem sie eher erwerbslose, Verdienst suchende Arbeiter dazu veranlasst, als solche, die erwerbstatig sind, haben widerspruchliche Ergebnisse gezeitigt. Die ist zumindest teilweise Studien zuzuschreiben, welche die industrielle Organisation von Regionen vernachlassigen und versaumen, angemessene Variable zur Darstellung von Marktchancen einzuschliessen. Der Autor benutzt Daten amerikanischer Unternehmen des Einzelhandels und der Dienstleistungindustrie mit massigen Einstiegsanforderungen, findet jedoch wenig oder keine Beweise fur die Hypothese, dass Erwerbslosigkeit einen Anstoss darstellt. Regionen der USA mit verhaltnismassig hohen Erwerbsloigkeitsraten zeigen bei breiter Palette von Industrien spater durchweg keine unverhaltnismassig starke Zunahme der Anzahl von Betriebsneugrundungen auf. Gebrauchtwarenladen und Werkstatten fur Kraftfahrzeugreparaturen stellen mogliche Ausnahmen dar.

Suggested Citation

  • Martin Carree, 2002. "Does Unemployment Affect the Number of Establishments? A Regional Analysis for US States," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 389-398.
    • Handle: RePEc:taf:regstd:v:36:y:2002:i:4:p:389-398
    DOI: 10.1080/00343400220131151
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    References listed on IDEAS

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