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Do Entrepreneurs Create Jobs?

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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.

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Authors and Affiliations

  1. The Swedish Research Institute of Trade, 103 29, Stockholm, Sweden

    Stefan Fölster

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  1. Stefan Fölster
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Fölster, S. Do Entrepreneurs Create Jobs?. Small Business Economics 14, 137–148 (2000). https://doi.org/10.1023/A:1008141516160

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