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Abstract
The impact of new business formation on regional employment has been investigated. The main effects occur after a considerable time lag. Obviously, a large part of the effect is not due to job creation by the newcomers but rather is of indirect nature. This implies that a large part of the debate about job creation by new business so far has been misleading.
Acknowledgements
Financial support from the German Science Foundation (grant FR 242/7-1) is gratefully acknowledged.
Notes
The R 2adj of the full models is 0.16 each; F-values are 32.41 without Almon lag procedure and 52.21 for the model with the Almon lag procedure. For the results of the full model and a discussion of results with other types of polynomial see Fritsch and Mueller (Citation2004).
