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Does Entrepreneurship reduce Unemployment?

Author

Listed:
  • D.B. Audretsch

    (Indiana University, CEPR, and EIM)

  • M.A. Carree

    (CASBEC, Erasmus University Rotterdam, University Maastricht, and EIM)

  • A.R. Thurik

    (CASBEC, Erasmus University Rotterdam, and EIM)

Abstract

In this paper, we develop two hypotheses: First, regional innovation efforts have a positive impact on regional knowledge based entrepreneurial activity. Second, knowledge based entrepreneurship positively affects regional economic performance. We test these hypotheses using county level data from West Germany, employing a structural equation model to analyze the relationships between latent variables. Our empirical analysis provides evidence supporting both hypotheses. In particular, our results suggest that innovation efforts have an indirect effect on economic performance via entrepreneurship. This indirect effect is neglected in existing empirical studies focusing on the direct effect of innovation on economic performance. See also 'Does Self-Employment reduce Unemployment?' in the 'Journal of Business Venturing' , 23(6), 2008, 673-86, by A. Roy Thurik, Martin A. Carree, Andre van Stel, David B. Audretsch.

Suggested Citation

  • D.B. Audretsch & M.A. Carree & A.R. Thurik, 2001. "Does Entrepreneurship reduce Unemployment?," Tinbergen Institute Discussion Papers 01-074/3, Tinbergen Institute, revised 24 Oct 2008.
    • Handle: RePEc:tin:wpaper:20010074
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2015. "Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 23-55, January.
    2. Muhammad Ataur Rahman & Mohammad Masudur Rahman, 2017. "Factors, Impacts, Problems and Solutions of Freelance Earning in the context of Bangladesh," Business & Entrepreneurship Journal, SCIENPRESS Ltd, vol. 6(1), pages 1-1.
    3. Nadine LEVRATTO, 2014. "Does firm creation depend on local context? A focus on the neighbouring effects," Working Papers 40, Réseau de Recherche sur l’Innovation. / Research Network on Innovation.
    4. Gaillard, Alexandre & Kankanamge, Sumudu, 2018. "Entrepreneurship, Labor Market Mobility and the Role of Entrepreneurial Insurance," TSE Working Papers 18-929, Toulouse School of Economics (TSE), revised Jan 2019.
    5. Stephen Dobson & John Goddard, 2008. "Strategic Behaviour and Risk Taking in Football," Working Papers 0805, University of Crete, Department of Economics.
    6. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant, 2013. "Typology of the French regional development: revealing the refugee/Schumpeter effects in new-firms startups," Economics Working Paper Archive (University of Rennes & University of Caen) 201333, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    7. André van Stel & Roy Thurik & Dennis Fok & Andrew Burke, 2009. "The Dynamics of Entry and Exit," Scales Research Reports H200907, EIM Business and Policy Research.
    8. Albiol, Judit, 2012. "Business Exits entail greater future levels of entrepreneurship? An empirical analysis at country level," Working Papers 2072/211754, Universitat Rovira i Virgili, Department of Economics.
    9. Rosca Remus & Sipos-Gug Sebastian, 2015. "The Role Of Student-Centered Education In Stimulating The Entrepreneurial Spirit Of University Graduates," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 555-566, July.
    10. Roy Thurik, 2003. "Entrepreneurship and Unemployment in the UK," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(3), pages 264-290, August.

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    More about this item

    Keywords

    entrepreneurship; unemployment; economic development; Gibrat's Law;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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