Venture Capital Investment and Labor Market Performance: A Panel Data Analysis

32 Pages Posted: 21 Feb 2002

See all articles by Ansgar Hubertus Belke

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration; IZA Institute of Labor Economics; Centre for European Policy Studies

Rainer Fehn

CESifo (Center for Economic Studies and Ifo Institute)

Neil Foster-McGregor

UNU-MERIT

Multiple version iconThere are 2 versions of this paper

Date Written: January 2002

Abstract

Labor market performance has differed considerably between OECD countries over the last two decades. The focus of the literature so far has been to ask whether these differences can be explained by varying degrees of labor market rigidities and generosity of welfare states. This paper takes a different perspective and analyzes whether differences in venture capital investments have explanatory power with respect to labor market performance across countries and over time. In particular, the Anglo-Saxon countries have been relatively successful over the last two decades in producing employment growth and in reducing unemployment compared to most continental European OECD countries. As a rule they have also been and are still ahead in developing thriving venture capital markets that are often deemed crucial for the creation of new firms and for successfully managing the ongoing radical structural change away from traditional industrial production toward the so-called "new economy".

Keywords: Labor Markets, Venture Capital, Unemployment, New Economy, Panel Analysis

JEL Classification: E22, E24, E44, G24, G32

Suggested Citation

Belke, Ansgar Hubertus and Fehn, Rainer and Foster-McGregor, Neil, Venture Capital Investment and Labor Market Performance: A Panel Data Analysis (January 2002). CESifo Working Paper Series No. 652. Available at SSRN: https://ssrn.com/abstract=301173

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration ( email )

Universitätsstr. 9
Essen, 45141
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for European Policy Studies ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Rainer Fehn (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Neil Foster-McGregor

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

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