Local spillovers from high-growth businesses: do gazelles cannibalize or promote employment growth?

Abstract This article estimates the employment spillover effect of high-growth businesses on establishment-level employment growth. We assess whether the impact depends on the rurality of the region, and whether nearby establishments are high-growth businesses themselves. We also estimate the within...

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Bibliographic Details
Published in:Industrial and corporate change 2020-10, Vol.29 (5), p.1167-1192
Main Authors: Crown, Daniel, Wojan, Timothy, Rupasingha, Anil
Format: Article
Language:English
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Summary:Abstract This article estimates the employment spillover effect of high-growth businesses on establishment-level employment growth. We assess whether the impact depends on the rurality of the region, and whether nearby establishments are high-growth businesses themselves. We also estimate the within-industry impact of high-growth establishments (HGEs). The findings show no impact of HGEs on net employment growth, due to equal gross job creation and job destruction on average. However, we find that within the same industry, HGEs contribute to positive net employment growth, with large and nearly equal impacts on existing HGEs across both Metropolitan Statistical Areas regions and non-metro counties.
ISSN:0960-6491
1464-3650
DOI:10.1093/icc/dtaa032