2009-10-01
Unemployment and firm entry and exit: An update on a controversial relationship
Publication
Publication
Regional Studies , Volume 43 - Issue 8 p. 1061- 1073
Unemployment and firm entry and exit: an update on a controversial relationship, Regional Studies. The present study explores the relationship between unemployment and subsequent firm entry and exit for 103 Italian provinces for the period 1997-2003. Two models are estimated. The first model concentrates on unemployed individuals starting or closing a business in the province in which they live. The second model incorporate cross-border effects by taking into account possible start-ups by unemployed individuals from adjacent provinces. Findings show that a positive effect of unemployment on net entry is not due to a positive 'push' effect on entry, but rather to a negative effect of unemployment on firm exit. This indicates a lack of dynamics in the Italian labour market.
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| doi.org/10.1080/00343400801968361, hdl.handle.net/1765/70321 | |
| Regional Studies | |
| Organisation | Erasmus Research Institute of Management |
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Santarelli, E., Carree, M., & Verheul, I. (2009). Unemployment and firm entry and exit: An update on a controversial relationship. Regional Studies, 43(8), 1061–1073. doi:10.1080/00343400801968361 |
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