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Start-ups and employment dynamics within and across sectors
KTH, School of Architecture and the Built Environment (ABE), Centres, Centre of Excellence for Science and Innovation Studies, CESIS.
2011 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 36, no 4, 461-483 p.Article in journal (Refereed) Published
Abstract [en]

We use a decade of longitudinal data on start-ups and employment in Swedish regions to analyze the effect of start-ups on subsequent employment growth. We extend previous analyses by decomposing the effect of start-ups on total employment change into within- and cross-sector effects. We find that start-ups in a sector influence employment change in the same as well as in other sectors. The results illustrate that the known S-shaped pattern can be attributed to the different effects of start-ups in a sector on employment change in the same sector and in others. Start-ups in a sector have a positive impact on employment change in the same sector. The effects on employment change in other sectors may be negative or positive, and depend on the sector under consideration. In particular, start-ups in high-end services deviate from manufacturing and low-end services in that they have significant negative impacts on employment change in other sectors. The findings are consistent with the idea that start-ups are a vehicle for change in the composition of regional industry.

Place, publisher, year, edition, pages
2011. Vol. 36, no 4, 461-483 p.
Keyword [en]
Entrepreneurship, Employment growth, Regional development, Start-ups
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:kth:diva-33207DOI: 10.1007/s11187-009-9252-0ISI: 000289212600006Scopus ID: 2-s2.0-79953694509OAI: oai:DiVA.org:kth-33207DiVA: diva2:418098
Note
QC 20110519Available from: 2011-05-19 Created: 2011-05-02 Last updated: 2017-12-11Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
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Output format
  • html
  • text
  • asciidoc
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