Small Business Economics

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

Do Entrepreneurs Create Jobs?

  • Stefan Fölster


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.


Empirical Analysis Panel Data Industrial Organization Significant Positive Effect Regular Employment 
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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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