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Regional unemployment structure and new firm formation

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  • Audretsch, David B.
  • Dohse, Dirk
  • Niebuhr, Annekatrin

Abstract

Does regional unemployment increase or rather decrease entrepreneurial activity? Although this question has been hotly debated among researchers for decades the answers yielded so far are ambiguous and inconclusive. The paper proposes an innovative approach that takes not only interregional differences in unemployment rates, but also in unemployment duration and the human capital of the unemployed-i.e. in the structure of regional unemployment-into account. Both, the skill structure of the unemployed and the share of long-term unemployment are found to have an important impact on regional start-up activity. Moreover, the impact of unemployment structure on new firm formation is found to vary with the knowledge-intensity of the start-ups.

Suggested Citation

  • Audretsch, David B. & Dohse, Dirk & Niebuhr, Annekatrin, 2014. "Regional unemployment structure and new firm formation," Kiel Working Papers 1924, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1924
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    2. Timo Mitze & Teemu Makkonen, 2020. "When interaction matters: the contingent effects of spatial knowledge spillovers and internal R&I on firm productivity," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1088-1120, August.
    3. Dvouletý Ondřej, 2017. "Does the Self-employment Policy Reduce Unemployment and Increase Employment? Empirical Evidence from the Czech Regions," Central European Journal of Public Policy, Sciendo, vol. 11(2), pages 11-22, December.
    4. Małgorzata Wosiek, 2023. "Unemployment and Enterprise Births in European Countries: A Sectoral Approach," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    5. Hanqiao Zhang, 2024. "Exit Spillovers of Foreign-invested Enterprises in Shenzhen's Electronics Manufacturing Industry," Papers 2404.18009, arXiv.org.
    6. Andrew Henley, 2017. "The post-crisis growth in the self-employed: volunteers or reluctant recruits?," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1312-1323, September.
    7. Lars-Fredrik Andersson & Therese Danley & Rikard Eriksson & Martin Henning, 2020. "Workers’ participation in regional economic change following establishment closure," Small Business Economics, Springer, vol. 54(2), pages 589-604, February.
    8. Guy Baudelle & Sébastien Bourdin & Louis-Thibault Buron & Clément Marinos, 2023. "Third Places in France: what Role for Areas Outside the Metropolis? [Les tiers-lieux en France : quelle place pour les zones hors métropole ?]," Post-Print hal-04302219, HAL.
    9. Giuseppe Arcuri & Marc Brunetto & Nadine Levratto, 2019. "Spatial patterns and determinants of firm exit: an empirical analysis on France," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 99-118, February.
    10. Rosa Sanchis-Guarner & Nikodem Szumilo & Antoine Vernet, 2024. "Startup Stations: The Impact of Rail Access on Entrepreneurship (Self-Employment) in England Wales," CESifo Working Paper Series 11227, CESifo.
    11. Tina Haussen & Marcus Schlegel, 2020. "Unemployment reduction through solo self-employment: A gender question?," Empirical Economics, Springer, vol. 59(6), pages 3085-3105, December.
    12. Audretsch, David B. & Dohse, Dirk & dos Santos, João Pereira, 2017. "Do toll-free highways foster firm formation and employment growth? Results from a quasi-natural experiment," Kiel Working Papers 2080, Kiel Institute for the World Economy (IfW Kiel).
    13. Arauzo Carod, Josep Maria & Coll Martínez, Eva & Turcu, Camelia, 2018. "Where New Creative Industries Locate? Evidence from French Departments," Working Papers 2072/307042, Universitat Rovira i Virgili, Department of Economics.
    14. Carlo Corradini, 2022. "Social trust and new firm formation: a regional perspective," Small Business Economics, Springer, vol. 58(1), pages 169-184, January.
    15. Carlo Corradini & Enrico Vanino, 2022. "Path dependency, regional variety and the dynamics of new firm creation in rooted and pioneering industries [The knowledge spillover theory of entrepreneurship]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 631-651.

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    More about this item

    Keywords

    regional unemployment; new business formation; skill structure; long-term unemployment;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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