Venture capital availability and labour market performance around the world

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This article studies the effects of venture capital on the performance of the labour market. Using data from a much larger sample of countries than previous papers, it finds more readily available venture capital to favourably affect both the unemployment and the employment rate. The magnitude of the estimated effects is substantial. We control for both endogeneity of venture capital availability and most major determinants of labour market performance. The results are robust to variations in specification.

Keywords: E24; E44; G24; J64; employment; labour market; unemployment; venture capital

Document Type: Research Article


Affiliations: Department of Economics, University of Bath, Bath, BA2 7AY, UK

Publication date: January 2, 2014

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