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Is job creation dependent on the local context? An analysis of French industrial establishments over the period 2004-2010

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  • Aziza Garsaa
  • Nadine Levratto

Abstract

This paper seeks to shed some light on the relationship between individual performance and local context. We empirically address this question focusing on the employment growth rate of French manufacturing establishments geo-referenced at the employment area level, an economically consistent territorial division. Using an unbalanced panel of 149,929 plants over the period 2004-2010, we estimate different growth models including local specific variables controlled with company specific ones. The results confirm that the firm growth rate is influenced by the local context and that some features such as unemployment, agglomeration effects or skills matter significantly. The robustness checks performed on subsamples, however, show that the profile of the areas or the market (local or larger) may significantly affect the intensity of the link between a firm and its environment.

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  • Aziza Garsaa & Nadine Levratto, 2014. "Is job creation dependent on the local context? An analysis of French industrial establishments over the period 2004-2010," EconomiX Working Papers 2014-49, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2014-49
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    More about this item

    Keywords

    firm growth; geographical location; manufacturing industry; panel data.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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