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Employment effects of business dynamics: mice, gazelles and elephants

Acs, Zoltan J. and Mueller, Pamela (2007) Employment effects of business dynamics: mice, gazelles and elephants. Small Business Economics, 30 (1). pp. 85-100. ISSN 0921-898X

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Identification Number: 10.1007/s11187-007-9052-3

Abstract

Much of the theoretical work on industry dynamics focuses on the role of ‘noisy’ selection and incomplete information on firm entry and survival. We extend this research by looking at the impact of firm heterogeneity on employment effects for 320 U.S. Metropolitan Statistical Areas (MSA). We find that only start-ups with greater than 20 and less than 500 employees have persistent employment effects over time and only in large diversified metropolitan regions. Therefore, both the type of entry (Gazelles) and the characteristics of the region are important for employment growth.

Item Type: Article
Official URL: http://link.springer.com/journal/11187
Additional Information: © 2008 Springer
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Management
Date Deposited: 10 Apr 2014 13:35
Last Modified: 10 Apr 2014 13:35
URI: http://eprints.lse.ac.uk/id/eprint/56480

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