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Large Scope Business Sector Reforms: Has the Swedish Business Sector Become More Entrepreneurial than the U.S. Business Sector?

Author

Listed:
  • Andersson, Fredrik

    (Research Institute of Industrial Economics (IFN))

  • Heyman, Fredrik

    () (Research Institute of Industrial Economics (IFN))

  • Norbäck, Pehr-Johan

    () (Research Institute of Industrial Economics (IFN))

  • Persson, Lars

    () (Research Institute of Industrial Economics (IFN))

Abstract

Recent studies document a 30-year decline in various measures of entrepreneurship in the United States. In contrast, using detailed Swedish employer-employee data over the period 1990–2013, we find no decline in Swedish entrepreneurial activity. Aggregate net job creation is greatest among the youngest firms in the Swedish business sector. Moreover, most of the net job creation by young firms takes place in the expanding service sector. We argue that a key explanation for the high entrepreneurial activity in the Swedish business sector during the last two decades stems from economic reforms in the 1990s that mitigated several hurdles to entrepreneurship.

Suggested Citation

  • Andersson, Fredrik & Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars, 2016. "Large Scope Business Sector Reforms: Has the Swedish Business Sector Become More Entrepreneurial than the U.S. Business Sector?," Working Paper Series 1147, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:1147
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    References listed on IDEAS

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    More about this item

    Keywords

    Entrepreneurship; Job dynamics; Matched employer-employee data; Industrial structure and structural change;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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