Job Quality by Entrepreneurial Spinoffs

This Danish study looks at whether entrepreneurial spinoffs are important drivers of industry dynamics. More precisely, the booklet investigates whether the quality of jobs in spinoff entrepreneurs are higher than for other entrepreneurs. It distinguishes spinoff firms by different types and differentiates between growing and declining industry-region clusters. It finds that spinoffs on average have higher wages, are more skill intensive, have higher sales per worker, and are more productive than non-spinoff entrepreneurial firms. The differences are more pronounced in growing clusters. An important feature of the analysis is that the entrepreneur is measured as an organic new firm, meaning new firms that are not the result of the restructuring or the organizing of a formally new firm. (Series: The Rockwool Foundation Research Unit - Study Paper - No. 102) [Subject: Labor Studies, Business]