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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

Abstract

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

Suggested Citation

  • Enrico Santarelli & Martin Carree & Ingrid Verheul, 2009. "Unemployment and Firm Entry and Exit: An Update on a Controversial Relationship," Regional Studies, Taylor & Francis Journals, vol. 43(8), pages 1061-1073.
    • Handle: RePEc:taf:regstd:v:43:y:2009:i:8:p:1061-1073
    DOI: 10.1080/00343400801968361
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    References listed on IDEAS

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    1. Thurik, A. Roy & Carree, Martin A. & van Stel, André & Audretsch, David B., 2008. "Does self-employment reduce unemployment?," Journal of Business Venturing, Elsevier, vol. 23(6), pages 673-686, November.
    2. Fabiano Schivardi & Eliana Viviano, 2007. "Entry barriers in Italian retail trade," Temi di discussione (Economic working papers) 616, Bank of Italy, Economic Research and International Relations Area.
    3. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
    4. Enrico Santarelli (ed.), 2006. "Entrepreneurship, Growth, and Innovation," International Studies in Entrepreneurship, Springer, number 978-0-387-32314-5, November.
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