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Start-Ups and Employment Growth - Evidence from Sweden

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  • Martin Andersson

    (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology and Jönköping International Business School (JIBS))

  • Florian Noseleit

    (Friedrich-Schiller-University Jena, School of Economics and Business Administration)

Abstract

We use longitudinal data over a decade on start-ups and employment in Swedish regions and analyze the effect of start-ups on subsequent employment growth. We extend previous analyses by examining the influence of regional start-ups in a sector on regional employment growth in the same sector and on other sectors. We find differences between different types of start-ups. Knowledge-intensive start-ups seem to have larger effects on the regional economy. In particular, start-ups in high-end services have significant negative impacts on employment in other sectors but a positive long-run impact. This is consistent with the idea that start-ups are a vehicle for changes in the composition of regional industry. Moreover, our results illustrate that the known S-shaped pattern can be attributed to different effects that start-ups in a sector have on employment change in the same sector and in others.

Suggested Citation

  • Martin Andersson & Florian Noseleit, 2008. "Start-Ups and Employment Growth - Evidence from Sweden," Jena Economics Research Papers 2008-091, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2008-091
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    Cited by:

    1. David Audretsch & Maksim Belitski & Sameeksha Desai, 2015. "Entrepreneurship and economic development in cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 33-60, October.
    2. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, June.
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    4. Saima Bashir & Tesfa Gebremedhin, 2011. "An Analysis of the Relationship Between New Firm Formation and Economic Development in the Northeast Region of the United States," Working Papers Working Paper 2011-02, Regional Research Institute, West Virginia University.
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    More about this item

    Keywords

    Entrepreneurship; Employment Growth; Regional Development; Start-ups;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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