The Relationship between Firm Births and Job Creation
AbstractThis 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.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-052/3.
Date of creation: 04 Jun 2002
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new-firm startups; employment growth; entrepreneurship; Great Britain.;
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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