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Unemployment and Firm Entry and Exit: An Update on a Controversial Relationship


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  • Enrico Santarelli
  • Martin Carree
  • Ingrid Verheul


Santarelli E., Carree M. and Verheul I. Unemployment and firm entry and exit: an update on a controversial relationship, Regional Studies. The present study explores the relationship between unemployment and subsequent firm entry and exit for 103 Italian provinces for the period 1997-2003. Two models are estimated. The first model concentrates on unemployed individuals starting or closing a business in the province in which they live. The second model incorporate cross-border effects by taking into account possible start-ups by unemployed individuals from adjacent provinces. Findings show that a positive effect of unemployment on net entry is not due to a positive 'push' effect on entry, but rather to a negative effect of unemployment on firm exit. This indicates a lack of dynamics in the Italian labour market. [image omitted] Santarelli E., Carree M. et Verheul I. Le chomage et l'entree et la sortie des entreprises: une mise a jour d'un rapport controverse, Regional Studies. La presente etude cherche a examiner le rapport entre le chomage et l'entree et la sortie ulterieures des entreprises pour 103 provinces italiennes pendant la periode allant de 1997 jusqu'a 2003. On estime deux modeles. Quant au premier modele, on se concentre sur les chomeurs qui creent ou qui ferment une entreprise dans la province ou ils habitent. Pour ce qui est du deuxieme modele, on y inclut des effets transfrontaliers, en tenant compte des creations d'entreprise eventuelles par les chomeurs qui habitent les provinces limitrophes. Il s'avere que l'effet positif du chomage sur l'entree nette ne s'explique pas par un effet 'moteur' positif au moment de l'entree mais plutot par l'effet negatif du chomage sur la sortie des entreprises. Ceci indique un manque de dynamique sur le marche du travail italien. Chomage Entree et sortie des entreprises Provinces italiennes Santarelli E., Carree M. und Verheul I. Arbeitslosigkeit und Betriebsgrundungen bzw.-schliessungen: aktuelle Informationen zu einer kontroversen Beziehung, Regional Studies. In dieser Studie wird die Beziehung zwischen Arbeitslosigkeit und anschliessenden Betriebsgrundungen bzw.-schliessungen in 103 italienischen Provinzen im Zeitraum von 1997 bis 2003 untersucht. Wir stellen Schatzungen anhand von zwei Modellen auf. Im ersten Modell konzentrieren wir uns auf arbeitslose Einzelpersonen, die in der Provinz, in der sie leben, einen Betrieb grunden oder schliessen. Im zweiten Modell integrieren wir grenzubergreifende Auswirkungen, indem wir mogliche Neugrundungen durch arbeitslose Einzelpersonen aus angrenzenden Provinzen berucksichtigen. Aus den Ergebnissen geht hervor, dass eine positive Auswirkung der Arbeitslosigkeit auf die Nettozahl der Firmengrundungen nicht auf einen positiven 'Push'-Effekt auf die Betriebsgrundungen zuruckzufuhren ist, sondern vielmehr auf einen negativen Effekt der Arbeitslosigkeit auf die Betriebsschliessungen. Dies weist auf eine mangelnde Dynamik des italienischen Arbeitsmarkts hin. Arbeitslosigkeit Betriebsgrundungen und -schliessungen Italienische Provinzen Santarelli E., Carree M. y Verheul I. Desempleo y entrada y salida de empresas: actualizacion de una relacion controvertida, Regional Studies. En el presente estudio analizamos la relacion entre el desempleo y la posterior entrada y salida de empresas para 103 provincias italianas durante el periodo de 1997 a 2003. Evaluamos dos modelos. En el primer modelo nos centramos en personas desempleadas, que empiezan o cierran un negocio en la provincia en la que viven. En el segundo modelo incorporamos los efectos transfronterizos teniendo en cuenta posibles empresas emergentes por parte de personas en paro de provincias adyacentes. Los resultados indican que un efecto positivo del desempleo en la entrada neta no se debe a un efecto positivo de 'empuje' sino a un efecto negativo del desempleo al cerrar las empresas. Esto indica una falta de dinamica en el mercado laboral italiano. Desempleo Entrada y salida de empresas Provincias italianas

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 43 (2009)
Issue (Month): 8 ()
Pages: 1061-1073

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Handle: RePEc:taf:regstd:v:43:y:2009:i:8:p:1061-1073

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Keywords: Unemployment; Firm entry and exit; Italian provinces;


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Cited by:
  1. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, vol. 22(6), pages 1453-1495, December.
  2. Quatraro, Francesco & Vivarelli, Marco, 2013. "Drivers of Entrepreneurship and Post-Entry Performance of Newborn Firms in Developing Countries," IZA Discussion Papers 7436, Institute for the Study of Labor (IZA).
  3. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
  4. Roberta Piergiovanni & Martin Carree & Enrico Santarelli, 2009. "Creative Industries, New Business Formation and Regional Economic Growth," Jena Economic Research Papers 2009-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  5. Traikova, Diana, 2013. "Determinants of non-farm entrepreneurial intentions in a transitional context: Evidence from rural Bulgaria," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 72, number 72.
  6. 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.
  7. Martin Carree & Antonio Malva & Enrico Santarelli, 2014. "The contribution of universities to growth: empirical evidence for Italy," The Journal of Technology Transfer, Springer, vol. 39(3), pages 393-414, June.
  8. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
  9. David B. Audretsch & Dirk Christian Dohse & Annekatrin Niebuhr, 2014. "Regional Unemployment Structure and New Firm Formation," Kiel Working Papers 1924, Kiel Institute for the World Economy.
  10. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  11. Marco Vivarelli, 2011. "Baumol, W.J.: The microtheory of innovative entrepreneurship," Journal of Economics, Springer, vol. 103(2), pages 199-202, June.
  12. Calá, Carla Daniela & Manjón Antolín, Miguel C. & Arauzo Carod, Josep Maria, 2014. "The Determinants of Exit in Argentina: Core and Peripheral Regions," Working Papers 2072/225299, Universitat Rovira i Virgili, Department of Economics.
  13. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  14. Alessandra Colombelli & Francesco Quatraro, 2013. "New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions," Working Papers hal-00858989, HAL.
  15. Panu Kalmi, 2013. "Catching a wave: the formation of co-operatives in Finnish regions," Small Business Economics, Springer, vol. 41(1), pages 295-313, June.
  16. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
  17. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute for the Study of Labor (IZA).
  18. repec:dgr:uvatin:2009070 is not listed on IDEAS


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