Gross, Net, and New Job Creation by Entrepreneurs

Journal of Business Venturing Insights, 8:64-70 (2017)

HEC Paris Research Paper No. SPE-2017-1188

15 Pages Posted: 21 Feb 2017 Last revised: 5 Jul 2017

See all articles by Thomas B. Astebro

Thomas B. Astebro

HEC Paris - Economics and Decision Sciences

Joacim Tåg

Research Institute of Industrial Economics (IFN)

Multiple version iconThere are 2 versions of this paper

Date Written: June 16, 2017

Abstract

Using a dataset with over 24 million observations and the universe of more than 230,000 entries into entrepreneurship we analyze the gross (including the founders), net (excluding the founders), and new (jobs to the former unemployed or those outside the labor force) job creation by entrepreneurs two and six years after start-up. These novel measures of job creation shows that the average entrepreneur does not create any jobs for any other than him/her-self, and typically arrives from having another job. Thus, short term job creation by entrepreneurs involves a reshuffling of jobs from older to new firms rather than creating new jobs.

Keywords: Entrepreneurship, job creation, incorporation, occupational choice, self-employment, sole proprietorship

JEL Classification: L26, J24

Suggested Citation

Astebro, Thomas B. and Tåg, Joacim, Gross, Net, and New Job Creation by Entrepreneurs (June 16, 2017). Journal of Business Venturing Insights, 8:64-70 (2017); HEC Paris Research Paper No. SPE-2017-1188. Available at SSRN: https://ssrn.com/abstract=2921251 or http://dx.doi.org/10.2139/ssrn.2921251

Thomas B. Astebro (Contact Author)

HEC Paris - Economics and Decision Sciences ( email )

Jouy-en-Josas Cedex, 78351
France

HOME PAGE: http://www.hec.edu/Faculty-Research/Faculty-Directory/ASTEBRO-Thomas

Joacim Tåg

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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