The Effects of Industry Instability on Sector Entry: The Case of Maine
This paper investigates the effects of industry instability on the entry decisions of a large sample of Maine establishments. Instability is represented by the persistence of industry employment in Maine, measured over 3-month, 6-month, and 12-month intervals. Poisson regression results suggest that the employment persistence measures have a positive effect on the number of establishments that began operations per industry. This suggests that, other things being equal, entrants are attracted to sectors with high regional employment stability.
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