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Small Business Economics

, Volume 14, Issue 2, pp 137–148 | Cite as

Do Entrepreneurs Create Jobs?

  • Stefan Fölster
Article

Abstract

Many countries support the creation of new firms. Such policy is based on the presumption that the total number of jobs increases when a person moves from unemployment or regular employment to self-employment. In this paper the link between self-employment and overall employment is analyzed. The empirical analysis, based on panel data of Swedish counties from 1976–1995, pays particular attention to simultaneity issues. The results suggest that self-employment may have a significant positive effect on overall employment.

Keywords

Empirical Analysis Panel Data Industrial Organization Significant Positive Effect Regular Employment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • Stefan Fölster
    • 1
  1. 1.The Swedish Research Institute of TradeStockholmSweden

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