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Kristina Nyström

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070-313 34 78
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kristina.nystrom@ratio.se
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Professor Kristina Nyström study industry and firm dynamics in terms of creation, expansion, contraction and closure of firms. The research has a regional and/or institutional perspective. How do institutional conditions, such as rules and regulations, affect entrepreneurship? Her research also focuses on the role of entrepreneurship in the labour market as well as recruitment and skills shortages.

Kristina’s research focuses on the following themes:
• Firm dynamics in terms of creation, expansion, contraction and closure of firms
• Labor mobility related to entrepreneurship and displacement
• Institutions and entrepreneurship
• Firm dynamics and entrepreneurship in a regional context
• Labour market dynamics and employment in newly created and closed firms
• Recruitment of competence in a regional perspective

Related publications

    Article (with peer review)

    Recruitment of scarce competences to rural regions: Policy perspectives

    Nyström, K.

    Publication year

    2021

    Published in

    Review of regional research.

    Abstract

    This paper studies the perceived difficulty of recruiting scarce competencies to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections of Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and nonrural regions and that the difficulty of recruiting for the right skills results in a lack of skills matching and constitutes an obstacle to growth. Rural regions located close to urban areas can to some extent mitigate these recruitment problems, and their locations pose less of a barrier in recruitment processes compared to those of remotely located rural regions.

    Which policies can help remedy recruitment problems faced in rural regions? In both rural and nonrural regions, incentives for writing off student debt and relocation support for accompanying persons and tandem recruitment are perceived to be the most promising policies. Rural regions are more receptive to the implementation of such policies. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed.

    Nyström, K. Recruitment of scarce competences to rural regions: Policy perspectives. Rev Reg Res (2021). https://doi.org/10.1007/s10037-021-00155-

    Working paper

    Ratio Working Paper No. 348: Regional collaboration to enhance recruitment to rural regions

    Nyström, K.
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    Publication year

    2021

    Published in

    Ratio Working Paper

    Abstract

    The purpose of this paper is to study how municipalities work at the regional level with issues concerning skills shortages and recruitment. What information channels are used to obtain information about these shortcomings? How and with whom do the municipalities collaborate? This study provides a mapping of how collaboration between employers, regional policymakers, and other institutions works with regional recruitment. As such, this study provides important information and possible inspiration. The empirical findings obtained based on a survey targeted to the business sections in Swedish municipalities suggest that companies in rural regions turn to municipalities to a greater extent than companies in non-rural municipalities in regard to skills shortages and recruitment. In addition, it is perceived that there is a higher degree of cooperation between businesses and local politicians in regard to recruitment in rural municipalities compared to other municipalities. Even cooperation to develop competence at the regional level is thought to take place to a greater extent in rural municipalities than in non-rural municipalities.

    Working paper

    Ratio Working Paper No. 341: Recruitment of scarce competences to rural regions: Policies to promote recruitment

    Nyström, K.
    Download

    Publication year

    2020

    Published in

    Ratio Working Paper

    Abstract

    This paper studies the perceived difficulty of recruiting scarce competences to rural regions. Furthermore, the role of policy in facilitating and enhancing recruitment to and better skills matching in rural regions is discussed. Based on a survey targeted to the business sections in Swedish municipalities, the results show that recruitment is perceived to be difficult in both rural and non-rural regions. However, recruitment problems in the public sector are more pronounced in rural municipalities. Nevertheless, recruitment to the public and business sectors are perceived to be equally difficult in rural regions. Both rural municipalities and non-rural municipalities state that the difficulty of recruiting the right skills results in a lack of skills matching and constitutes an obstacle to growth. Which policies can help remedy recruitment problems in rural regions? The pecuniary incentive of writing off student debt is perceived to be the most promising policy, but respondents also believe that non-pecuniary support such as relocation support for accompanying persons and tandem recruitment should be implemented to a greater extent. Finally, the need for flexibility and policies that can be adapted to the regional demand for labour are stressed. This regards for example the adaption of education programmes to local needs and rules and regulations.

    Article (with peer review)

    Working for an entrepreneur: heaven or hell?

    Nyström, K.

    Publication year

    2021

    Published in

    Small Business Economics

    Abstract

    Recruiting employees to an entrepreneurial venture is a challenging task. From the employee’s perspective, accepting a position in an entrepreneurial venture potentially implies considerable uncertainty. This paper provide a literature review and identifies research gaps related to labor mobility of employees into and out of entrepreneurial firms. Who works for an entrepreneur? What are the conditions under which the employees of entrepreneurial firms work? Additionally, labor mobility after an employee works for an entrepreneurial firm is discussed. In conclusion, the quality of the jobs generated by entrepreneurial firms may be questionable (and still relatively unexplored in empirical research), but they are nevertheless important from a labor dynamic perspective. Better understanding about motives to work for an entrepreneur, issues related to job security beyond survival rates, and job quality may contribute to ease the recruitment problems that many entrepreneurial firms struggle with. Furthermore, the relevance and potential pros and cons of working for an entrepreneurial firm in future career paths (entrepreneur or employee) need to be carefully addressed in future research.

    Working paper

    Ratio Working Paper No. 324: Working for an entrepreneur: Heaven or Hell?

    Nyström, K.
    Download

    Publication year

    2019

    Published in

    Ratio Working Paper

    Abstract

    Recruiting employees to an entrepreneurial venture is a challenging task. From the employee’s perspective, accepting a position in an entrepreneurial venture potentially implies considerable uncertainty. This paper provide a literature review and identifies research gaps related to labor mobility of employees into and out of entrepreneurial firms. Who works for an entrepreneur? What are the conditions under which the employees of entrepreneurial firms work? Additionally, labor mobility after an employee works for an entrepreneurial firm is discussed. In conclusion the quality of the jobs generated by entrepreneurial firms may be questionable (and still relatively unexplored in empirical research), but they are nevertheless important from a labor dynamics perspective. Better understanding about motives to work for an entrepreneur, issues related to job security beyond survival rates, and job quality may contribute to ease the recruitment problems that many entrepreneurial firms struggle with. Furthermore, the relevance and potential pros and cons of working for an entrepreneurial firm in future career paths (entrepreneur or employee) needs to be carefully addressed in future research.

    Working paper

    Working Paper. No 312: Job displacement and skill mismatch

    Nyström, K.
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    Publication year

    2018

    Published in

    Ratio Working Paper

    Abstract

    Because of structural and technological changes, millions of employees experience job displacement every year (OECD, 2013a). Concurrently, a substantial proportion of employees can be defined as skill mismatched (OECD, 2013b). This paper explores the relationship between skill mismatch and job displacements. Are employees who are skill mismatched at their job more likely to become displaced? To explore the relationship between skill mismatch and job displacements, a dataset collected by the Programme for the International Assessment of Adult Competencies (PIAAC) from 27 countries is used. This dataset enables the identification of skill mismatch. Three measures that reflect skill mismatch in the domains of literacy, numeracy, and problem solving are used. The empirical findings suggest that over-skilled employees are less likely to be displaced, while under-skilled employees are more likely to be displaced. These findings are valid for all three skill domains.

    Working paper

    Working Paper. No 311: Entrepreneurial motivation and idea generation by displaced employees

    Nyström, K.
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    Publication year

    2018

    Published in

    Ratio Working Paper

    Abstract

    This paper studies the entrepreneurial motivation and idea generation process of displaced employees. The empirical results are based on both quantitative (survey) and qualitative (interviews) data collected from displaced employees who decided to become entrepreneurs after the closure of R&D facilities of the pharmaceutical company AstraZeneca in Lund (2010) and Södertälje (2012), Sweden. The empirical findings show that the previous experience and expertise gained from AstraZeneca greatly influenced the idea generation process. Although the employees were affected by their job displacement, still 70 percent of the entrepreneurial activities could be regarded as opportunity-based, suggesting that many entrepreneurs are driven by a combination of push and pull motives. With regard to the timing of the idea generation process, about one third of the entrepreneurs came up with their business ideas before learning about the facility closures. Hence, in many cases, being affected by the displacement spurred the launch of ideas that already existed.

    Article (with peer review)

    Entrepreneurial motivation and idea generation by displaced employees

    Källner, E., & Nyström, K.

    Publication year

    2018

    Published in

    International Review of Entrepreneurship

    Abstract

    This paper studies the entrepreneurial motivation and idea generation process of displaced employees. The empirical results are based on both quantitative (survey) and qualitative (interviews) data collected from displaced employees who decided to become entrepreneurs after the closure of R&D facilities of the pharmaceutical company AstraZeneca in Lund (2010) and Södertälje (2012), Sweden. The empirical findings show that the previous experience and expertise gained from AstraZeneca greatly influenced the idea generation process. Although the employees were affected by their job displacement, still 70 percent of the entrepreneurial activities could be regarded as opportunity-based, suggesting that many entrepreneurs are driven by a combination of push and pull motives. With regard to the timing of the idea generation process, about one third of the entrepreneurs came up with their business ideas before learning about the facility closures. Hence, in many cases, being affected by the displacement spurred the launch of ideas that already existed.

    Article (with peer review)

    Entrepreneurship after displacement

    Nyström, K.

    Publication year

    2020

    Published in

    Small Business Economics

    Abstract

    According to Hoetker and Agarwal (Academy of Management Journal, 50(2), 446–469, 2007), research on knowledge transfers related to business closures is scarce. This paper intends to fill the knowledge gap on the transition to entrepreneurship after a business closure. This paper studies which employees are most likely to start an entrepreneurial venture after being affected by a displacement. Furthermore, following, e.g., Hyttinen and Maliranta (Scandinavian Journal of Economics, 110(1), 1–21, 2008) and Sørensen (Administrative Science Quarterly, 52, 387–412, 2007), this study investigates the link between former workplace characteristics, such as the size and age of the former workplace, and the transition into entrepreneurship. In the second part of the analysis, the performance of the entrepreneurial ventures started by employees after displacement is explored as it relates to survival, employment, and profitability. The empirical setting employs an employer-employee-matched dataset coving all displaced employees in Sweden during 2001–2010. The empirical findings suggest that employees displaced from smaller firms are more likely to transition to entrepreneurship. Employing a Cox proportional hazard model to study the survival of these companies shows that new firms generated by displaced employees from small establishments are more viable. Furthermore, individuals who took part in labor market polices have a higher probability of becoming entrepreneurs, although these firms tend to show lower survival rates, which indicates that these transitions are necessity-based. As for the performance of the business, the empirical findings suggest modest growth in terms of employment, turnover, and operating profit for the vast majority of entrepreneurial ventures started after displacement.

    Book chapter

    Pre- and post-entrepreneurship Labor Mobility of Entrepreneurs and Employees in Entrepreneurial Firms

    Nyström, K.

    Publication year

    2018

    Published in

    London: SAGE Publications

    Abstract

    This chapter provides a literature review of existing research and identifies research gaps related to the labor mobility of both entrepreneurs and employees in entrepreneurial firms. Regarding entrepreneurs, there is a lot of research on their individual characteristics, including prior experience, and how the individual characteristics and experiences influence the performance of the firm. However, less is known on the post-entrepreneurship employment activity of entrepreneurs and how their prior experiences influence their future labor market careers.
    Regarding the labor mobility of employees in entrepreneurial firms, there is an emerging stream of literature on the individual characteristics of these employees. However, many issues related to their prior experience remain unexplored. Furthermore, labor mobility after working with an entrepreneurial firm is relatively less explored at this point. Accordingly, this chapter intends to summarize current research and outline avenues for future research regarding a) pre-entrepreneurship labor mobility of entrepreneurs and b) post-entrepreneurship labor mobility of entrepreneurs, as well as c) pre-entrepreneurship labor mobility of employees in entrepreneurial firms and d) post-entrepreneurship labor mobility of employees in entrepreneurial firms. In addition, the role of institutions and, in particular, employment protection laws (EPLs) for labor mobility of entrepreneurs and employees in entrepreneurial firms are discussed.

    Article (with peer review)

    Regional resilience to displacements

    Nyström, K.

    Publication year

    2018

    Published in

    Regional Studies

    Abstract

    This paper contributes to knowledge about regional resilience to displacement and examines the extent to which the characteristics of the (1) regional closures, (2) individuals in a region, (3) regional industry, (4) regional economy and (5) regional attractiveness influence the re-employment of displaced employees. Regions where the average size of establishment closures is large or the regional displacement rate is high exhibit increased resilience in terms of re-employing displaced employees in the same region. Unrelated and related industrial variety are positively related to resilience to displacement in regions with low re-employment capacities, whereas there is some evidence that regional attractiveness is positively related to resilience in regions with a good ability to re-employ displaced employees in the same region.

    Related content: Working paper No. 276

    Book chapter

    Exploring regional differences in the regional capacity to absorb displacements

    Nyström, K., & Viklund Ros, I.

    Publication year

    2017

    Published in

    In Geographies of Growth

    Abstract

    Extract: Every year there is substantial turbulence in economies with respect to establishing new firms and business closures. Job displacement, i.e. an involuntary loss of jobs due to economic downturns or structural changes affects millions of workers each year. A recent cross-country comparison by the Organisation for Economic Co-operation and Development (OECD) (2013) reveals that displacements affect 2–7 percent of employees every year. In the Swedish case, an average displacement rate of about 2 percent is reported for the time period 2000–2008. According to Tillvaxtanalys (2009)1 more than 100 000 Swedish employees lose their jobs annually due to business closures.2 Through the process of creative destruction, in which old and obsolete firms exit due to the entry of new and more productive firms, the resources used in the exiting firms are reallocated and possibly more efficiently used in the new firms. However, in some cases displaced workers are not able to find a new job, especially if, for example, the employee’s competences do not match the current demands in the labor market. Furthermore, the possibilities to find a new job after a closure may vary substantially depending on the regional conditions in the labor market. It may, for instance, be more difficult to find a new job after a business closure if the unemployment rate in the region is already high or if the displacement is connected to the closure of a locally dominant firm.

    Article (with peer review)

    When students are allowed to choose: grading scale choices for degree projects

    Nyström, K.

    Publication year

    2018

    Published in

    Studies in Higher Education

    Abstract

    This paper studies which grading systems students choose for their degree projects when they are given the choice. Furthermore, the motivational factors behind making this choice are investigated. Student record data and a survey of students conducting their degree projects are used to study whether students prefer the Pass/Fail or A-F grading scale for their degree projects. Data from study record transcripts show that 55% of students selected the Pass/Fail scale, whereas 45% opted for the A-F grading scale. The grade point average score among students choosing the Pass/Fail scale is somewhat higher compared to students who choose the A-F grading scale. Reduced stress associated with writing the degree project motivates those who choose the Pass/Fail grading scale. Enhanced motivation to do a good job on the thesis work and perceived good chances of receiving an A grade motivate students who choose the A-F grading scale.

    Article (with peer review)

    Access to Informal Venture Capital and Ambitious Entrepreneurship – Cross Country Evidence

    Avdeitchikova, S., & Nyström, K.

    Publication year

    2016

    Published in

    International Review of Entrepreneurship

    Abstract

    Many empirical studies have emphasized the importance of institutional venture capital for enabling high growth entrepreneurship and innovation. Yet, there are reasons to believe that provision of informal venture capital will have as significant, if not more significant effect on entrepreneurship. Based on Global Entrepreneurship Monitor data for 33 countries for the years 2001-2010, we study the relationship between the presence of informal investors in a country and the levels of general and ambitious entrepreneurship, defined as entrepreneurs that have intentions to grow their business, internationalize and/or innovate. Some of the main findings are that the overall level of access to informal venture capital is positively related to general entrepreneurship and ambitious entrepreneurship in terms of innovativeness, while access to arms-length money (i.e. informal investments made by work colleagues or strangers) appears to be positively related to ambitious entrepreneurship in terms of job growth expectations. The relationship between availability of arms-length money and the innovativeness of the entrepreneurial activities appears however to be negative.
    Related content: Working paper No. 278

    Working paper

    Working paper No. 278: Access to informal venture capital and ambitious entrepreneurship – cross country evidence

    Avdeitchikova, S., & Nyström, K.
    Download

    Publication year

    2016

    Published in

    Ratio Working Paper

    Abstract

    Many empirical studies have emphasized the importance of institutional venture capital for enabling high growth entrepreneurship and innovation. Yet, there are reasons to believe that provision of informal venture capital will have as significant, if not more significant effect on entrepreneurship. Based on Global Entrepreneurship Monitor data for 33 countries for the years 2001-2010, we study the relationship between the presence of informal investors in a country and the levels of general and ambitious entrepreneurship, defined as entrepreneurs that have intentions to grow their business, internationalize and/or innovate. Some of the main findings are that the overall level of access to informal venture capital is positively related to general entrepreneurship and ambitious entrepreneurship in terms of innovativeness, while access to arms-length money (i.e. informal investments made by work colleagues or strangers) appears to be positively related to ambitious entrepreneurship in terms of job growth expectations. The relationship between availability of arms-length money and the innovativeness of the entrepreneurial activities appears however to be negative.

    Related content: Access to Informal Venture Capital and Ambitious Entrepreneurship – Cross Country Evidence

    Working paper

    Working paper No. 276: Regional resilience to displacement

    Nyström, K.
    Download

    Publication year

    2016

    Published in

    Ratio Working Paper

    Abstract

    This paper contributes to knowledge about regional resilience to displacement and examines the extent to which the characteristics of the i) regional closures, ii) individuals in a region, iii) regional industry, iv) regional economy and v) regional attractiveness influence the re-employment of displaced employees. The results indicate that regions where the average size of establishment closures is large or the regional displacement rate is high exhibit increased resilience in terms of re-employing displaced employees in the same region. Unrelated and related industrial variety are positively related to resilience to displacement in regions with low re-employment capacities, whereas there is some evidence that regional attractiveness is positively related to resilience in regions with a good ability to re-employ displaced employees.
    Related content: Regional resilience to displacement

    Article (with peer review)

    New firms as employers: The wage penalty for voluntary and involuntary job switchers

    Nyström, K. & Zhetibaeva Elvung, G.

    Publication year

    2015

    Published in

    Labour 29

    Abstract

    According to previous research, new firms pay lower wages (Shane, 2009). However, previous studies have been unable to control for the possibility that the opportunity costs of accepting employment at new firms may differ across individuals. In this paper, we investigate whether a wage penalty for being employed at a new firm exists if we take the individual employee’s experience and status in the labour market into consideration. We focus on individuals who decide to switch jobs and use matched employee-employer data about all firms and employees in Sweden for the period 1998-2010. Our results show that the share of job transitions into lower wages are higher for those who switch to new firms compared to incumbent firms (40 percent and 31 percent respectively). Our endogenous wage equation estimates indicate that being an involuntary job switcher has an equally negative effect on wages at both new and incumbent firms. However, the positive effect of education on wages is more pronounced for job switchers selecting into incumbent firms.

    Article (with peer review)

    What Obstacles do entrepreneurs encounter?

    Lougui, M. & Nyström, K.

    Publication year

    2014

    Published in

    Journal of Entrepreneurship and Public Policy

    Abstract

    The purpose of this paper is to identify the obstacles encountered by current and potential entrepreneurs. The authors explore the areas associated with starting and running a business in which entrepreneurs find difficulties. Furthermore, the authors explore which entrepreneurs experience most difficulties. What issues do entrepreneurs in different sectors need help with? What issues do entrepreneurs with different current positions in the labor market need help with?

    The authors use a unique database that includes information regarding the questions that entrepreneurs ask when they call a government helpline established to provide information about how to start and run a business. The database consists of more than 30,000 observations during the period from 2005 to 2009.

    The results indicate that aside from general questions and concerns, taxes, laws and permits are the issues with which entrepreneurs most frequently need help. The authors do not find any gender differences regarding the need for help. Currently or future unemployed entrepreneurs more often need help related to financing, grants and business plans. Self-employed entrepreneurs need help with issues related to operating the firm, such as questions regarding employment, accounting, permits and laws.

    The research provides unique insights into the problems that entrepreneurs encounter during the entrepreneurial process. Hence, the paper identifies areas in which better or additional counseling and support from public policy agencies may be needed to improve the development and performance of new ventures.

    Article (with peer review)

    New firms and labor market entrants

    Nyström, K. & Zhetibaeva Elvung, G.

    Publication year

    2014

    Published in

    Small Business Economics 43

    Abstract

    In this paper, we explore the role of new firms as an entry point to the labor market. Because the vast majority of new firms are short-lived, it is a risky decision to accept employment in a new venture. It can be argued that individuals with little (or no) labor market experience are more willing to accept the high risks associated with employment in new firms. Hence, new firms may work as an entry point to the labor market. Nevertheless, some research concludes that one disadvantage of employment in a new firm is that new firms pay less (Shane in Small Bus Econ 33:141–149, 2009). However, this empirical conclusion is primarily based on literature on the wage penalty of small firms. In this paper, we study whether the wage penalty of employment in a new firm persists if we focus solely on labor market entrants. In the empirical analysis, we employ an employer-employee matched dataset that covers the Swedish population during the period from 1998 to 2008. We use the propensity score matching method to study the wage differences between labor market entrants employed in new and incumbent firms. We find an average wage penalty of 2.9 % for labor market entrants employed in new firms over the studied period.

    Working paper

    Ratio Working Paper No. 235: Exploring regional diffrences in the regional capacity to absorb displacements

    Nyström, K. & Viklund Ros, I.
    Download

    Publication year

    2014

    Published in

    Ratio Working Paper

    Abstract

    Every year there is a substantial turbulence in an economy with respect to new firm formation and business closures. Each year, according to Tillväxtanalys (2009), about 100 000 Swedish employees lose their job due to a business closure. However, the share of firm closures vary substantially across Swedish regions (Nyström, 2007; 2009) and consequently the number of workers affected by the firm closure can be expected to vary across regions. In this paper we explore the patterns of regional displacements and to what extent there are differences in the regional capacity to re-employ displaced workers within one year. We use individual-firm level data to identify all establishment closures and re-employments in Sweden during the period 2001-2009. On average the share of displaced workers is 1.22 percent, but the regional variation is substantial. We find that the regional share of re-employments within the region where the displaced worker was employed varies between 15 and 85 percent. We do not find any correlation between the share of displacements and the capacity to absorb displaced workers.

    Book chapter

    Business Regulation and Red Tape in the Entrepreneurial Economy

    Nyström, K.

    Publication year

    2014

    Published in

    Agglomeration, Clusters and Entrepreneurship

    Abstract

    This paper discusses the interrelationship between business regulations and entrepreneurial activities. Most empirical studies find that business regulations have a negative effect on the amount of entrepreneurial activities in an economy. In addition, we argue that the regulatory quality and amount of business regulation may also be influenced by the amount of entrepreneurial activities in the society since policymakers and bureaucrats tend to respond to changing conditions in the society. In the empirical part of the paper, data for 23 OECD countries for the period 1972-2002 in order to elaborate on the interrelationship between entrepreneurship and the quality of business regulations. The empirical findings indicate that there is a positive relationship between entrepreneurship, and the quality of business regulations.

    Reports

    After establishment closure

    Mastersuppsats: "After establishment closure - Individual characteristics that determines re-employment probabilities of displaced workers in Sweden", Ingrid Ros
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    Publication year

    2013

    Published in

    -

    Abstract

    Mastersuppsats: ”After establishment closure – Individual characteristics that determines re-employment probabilities of displaced workers in Sweden”, Ingrid Ros (KTH 2013).

    Ingrid Ros har undersökt vilka faktorer som avgör hur snabbt man kommer tillbaka i anställning efter uppsägning vid företags nedläggning. Kristina Nyström har varit handledare och arbetet ingår i forskningsprojektet Kompetens för tillväxt, som bedrivs av Ratio med finansiellt stöd av bl a Vinnova.

    Uppsatsen studerar sambandet mellan individuella egenskaper för uppsagda anställda och sannolikheten för återanställning. En hazard-modell har används för att skilja utfallet att man går från arbetslöshet till egenföretagande eller att bli anställda.

    Reports

    Redundancy duration and business alteration – Consequences of establishment closures in Sweden

    Mastersuppsats: "Redundancy duration and business alteration - Consequences of establishment closures in Sweden", Cecilia Magnergård
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    Publication year

    2013

    Published in

    -

    Abstract

    This thesis follows and analyses what happens to individuals who work at establishments that are closed down. I examine if and when the displaced workers are re-employed. Furthermore, I examine to what extent individuals have moved, changed industry of work, have started to commute or have become self-employed. Additionally I examine, if the workers become self- employed after displacement, how many of them that does so within the same industry of work as they initially got displaced from. A unique longitudinal matched employer-employee data incorporating all firms, establishments and their employees in Sweden between the years 1997-2008 is used. All individuals between 25 and 55 years of age at the time of displacement that were displaced between 2000 and 2003 due to establishment closures are followed over a five-year period of time. Consistent with previous empirical research, it is shown that an absolute majority of the workers that are displaced one given year also recovers within that same year. The results moreover express that the longer the displaced workers are out of employment, the larger is the willingness to change industry of work, change municipality of living or move into self-employment. The willingness to commute is however found to be fairly constant over time. Finally, I find that those who become self-employed to a greater extent start business in other industries than they were displaced from as time passes.

    Article (with peer review)

    Entrepreneurial Politicians

    Nyström, K.

    Publication year

    2013

    Published in

    Länk till artikel

    Abstract

    This paper explores the entrepreneurial experience (and spirit) of politicians. To what extent have they been involved in entrepreneurial activities? Are politicians more or less entrepreneurial than their voters? Are entrepreneurship policies more or less important to politicians compared to the voters they represent? The Members of the Swedish Parliament were asked the same questions regarding their entrepreneurial activities as found in the Global Entrepreneurship Monitor (GEM). The empirical results indicate that when we analyse the statistical significance of the differences and control for individual characteristics, politicians have similar experiences and ambitions to the rest of the population when it comes to entrepreneurial activities. Politicians have a high potential for becoming entrepreneurs in the future, but seem to be less optimistic about how entrepreneurs are perceived in the cultural context. In addition, there is a substantial discrepancy between how politicians and voters perceive the ease of starting and running a business. Unlike politicians, voters do not agree that it is easy to start and run a business in Sweden.

    Working paper

    Working Paper No. 167. Entrepreneurial Policymakers

    Nyström, K.
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    Publication year

    2011

    Published in

    Ratio Working Paper

    Abstract

    This paper explores the entrepreneurial experience (and spirit) of Swedish policymakers. To what extent have they been involved in entrepreneurial activities? Are they planning to start any entrepreneurial activities? Are politicians more or less entrepreneurial than their voters? How important are entrepreneurship policies to Swedish politicians? Are entrepreneurship policies more or less important to policymakers compared to the voters they represent? The Members of Parliament were asked the same questions regarding their entrepreneurial activities as found in the Global Entrepreneurship Monitor (GEM). The empirical results indicate that when, we analyse the statistical significance of the differences and control for individual characteristics, policymakers have similar experiences and ambitions to the rest of the population when it comes to entrepreneurial activities. Policymakers have a high potential for becoming entrepreneurs in the future, but seem to be less optimistic about how entrepreneurs are perceived in the Swedish cultural context. In addition, there is a substantial discrepancy between how policymakers and voters perceive the ease of starting and running a business. Unlike policymakers, voters do not agree that it is easy to start and run a business in Sweden.

    Article (with peer review)

    The Importance of Industry Structure in the Analysis of Regional Entry and Exit

    Nyström, K.

    Publication year

    2009

    Published in

    Regional and Sectoral Economic Studies

    Abstract

    Previous empirical research has suggested that a large amount of the regional variation of new firm formation can be explained by differences in industrial structure. This paper studies the regional patterns of entry and exit in Sweden 1997-2001 considering these findings. It is shown that for the country as a whole, on average during these five years between 0.5 and 2.7 percent of the regional variation in entry and exit rates remain to be explained when regional industrial entry and exit rates are compared to the national average. However, there are substantial regional variations, which should be acknowledged by policy-makers.

    Article (with peer review)

    Entry, Market Turbulence and Industry Employment Growth

    Nyström, K.

    Publication year

    2009

    Published in

    Empirica

    Abstract

    This paper investigates the relationship between industrial dynamics in terms of firm entry, market turbulence and employment growth. Do entry of firms, the composition of industry dynamics (net entry) and market turbulence (entry and exit) influence industrial employment growth? This paper provides an empirical investigation, using unique data for 42 disaggregated Swedish industrial sectors during the period 1997–2001. It is hypothesised that the importance of entering firms, net entry and market turbulence may differ significantly across industries. A quantile regression method is used in order to detect industrial differences in the response to industrial employment growth. The empirical evidence shows that, on the one hand, firm entry and market turbulence have a positive effect on employment for fast growing industries and that the effect is larger for high growth industries. On the other hand, the composition of industry dynamics in terms of net entry rates has a more dispersed effect across all industries, even though the effect of net entry is larger for high growth industries.

    Book chapter

    Knowledge Accessiblity and New Firm Formation

    Karlson, C. & Nystöm, K.

    Publication year

    2009

    Published in

    New Directions in Regional Economic Development: The Role of Entrepreneurship Theory and Methods, Practice and Policy

    Abstract

    Book chapter

    Is Entrepreneurship the Salvation for Enhanced Economic Growth?

    Nystöm, K.

    Publication year

    2009

    Published in

    Entrepreneurship and its Economic Significance, Behavior and Effects

    Abstract

    Book chapter

    Firm Size, Firm Maturity and Product and Process R&D in Swedish Manufacturing Firms

    Nystöm, K.

    Publication year

    2009

    Published in

    Entrepreneurship and Innovations in Functional Regions

    Abstract

    Article (with peer review)

    The Institutions of Economic Freedom and Entrepreneurship

    Nyström, K.

    Publication year

    2008

    Published in

    Public Choice

    Abstract

    This paper provides new evidence on the determinants of entrepreneurship across countries. The paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, measured by self-employment, in a panel data setting covering 23 OECD countries for the period 1972–2002. The measure of economic freedom includes five aspects: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and the regulation of credit, labour and business. The empirical findings show that a smaller government sector, better legal structure and security of property rights, as well as less regulation of credit, labour and business tend to increase entrepreneurship.

    Related content: Working Paper No. 114

    Reports

    Nyföretagan­de, näringslivsdynamik och tillväxt i den nya världseko­nomin

    Nyström, K. & Karlsson, C.

    Publication year

    2008

    Published in

    Underlagsrapport till Globaliseringsrådet

    Abstract

    Svedish report for the Globalisation Council of the Swedish government.

    Working paper

    Working Paper No. 114. The Institutions of Economic Freedom and Entrepreneurship

    Nyström, K.

    Publication year

    2008

    Published in

    The Institutions of Economic Freedom and Entrepreneurship

    Abstract

    This paper provides new evidence on the determinants of entrepreneurship across countries. The paper investigates the relationship between the institutional setting, in terms of economic freedom, and entrepreneurship, as measured by self-employment in a panel data setting covering 23 OECD countries and the time-period 1972-2002. The measure of economic freedom includes five aspects: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and the regulation of credit, labour and business. The empirical findings show that a smaller government sector, better legal structure and security of property rights and less regulation of credit, labour and business tend to increase entrepreneurship.

    Related content: The Institutions of Economic Freedom and Entrepreneurship

    Article (with peer review)

    Patterns and Determinants of Entry and Exit in Industrial Sectors in Sweden

    Nyström, K.

    Publication year

    2007

    Published in

    Journal of international Entrepreneurship

    Abstract

    This paper uses a unique dataset which gives a complete picture of the pattern of entry and exit in industrial sectors in Sweden during the period 1997–2001. The importance of profitability, industrial market growth, tangible capital intensity, intangible capital intensity and economies of scale for entry and exit are investigated. A fixed effects panel data model is used, and it is shown that the inclusion of unobserved industry-specific effects explains many of the inter-industrial differences in entry and exit rates. For policymakers, this implies that it is difficult to formulate an entrepreneurship policy that can be expected to be equally successful across all industries. It is also shown that investments in intangible assets is one way to compete, while economies of scale tend to deter entry rates.

    Article (with peer review)

    Interdependencies in the Dynamics of Entry and Exit

    Nyström, K.

    Publication year

    2007

    Published in

    Journal of Industry, Competition and Trade

    Abstract

    This paper investigates the interdependence between firm entry and exit from an industrial dynamics perspective. The paper discusses how entry and exit rates in industrial sectors are affected by previous exit and entry rates. Economic theory presents two different approaches to how entry and exit of firms are interrelated, the multiplier effect and the competition effect. This paper intends to investigate which force is the predominant one, for entry and exit patterns, respectively. The empirical analysis is based on data for 25 Swedish manufacturing industries at the 2-digit SIC level, during the period 1991–2000. In the estimation work the study applies a dynamic panel data approach as suggested by Anderson and Hsiao [Journal of the American Statistical Association, 76:598–606, 1981] and Arellano and Bond [Review of Economic Studies, 58(2):277–297, 1991]. With respect to entry, the empirical results support the multiplier effect such that entry stimulates future entry, but also a competition effect such that past exit induces additional entry. With regard to exit, on the other hand, the competition effect rules, implying that previous entry causes subsequent exit and previous exit reduces subsequent exit.

    Article (with peer review)

    An Industry Disaggregated Analysis of the Determinants of Entry and Exit

    Nyström, K.

    Publication year

    2007

    Published in

    The Annals of Regional Science

    Abstract

    Empirical research by, among others, Armington and Acs (Reg Stud 36:33–45, 2002) show that regional determinants of new firm formation differ between industries. This paper reinvestigates the regional determinants of entry and exit considering these findings using panel data methods at three different levels of aggregation. Agglomeration, in terms of localisation economies, is unequivocally found to be positive for regional new firm formation, but does not necessarily prevent firms from exiting. The results also show that industry structure is a more important explanatory variable for differences between entry and exit rates across regions than regional factors.

    Article (without peer review)

    Sysselsättningsproblemet – räcker antalet arbetsgivare till?

    Nyström, K. & Johansson, D.
    Download

    Publication year

    2006

    Published in

    Arbetsmarknad & Arbetsliv

    Abstract

    En sällan diskuterad fråga är om det inom överskådlig framtid kommer­ att finnas tillräckligt många nya och växande företag för att sysselsättningen ska öka? Vår slutsats i artikeln är att detta kräver radikala förbättringar av företagsklimatet och att det är tveksamt om det ekonomiskt önskvärda är det politiskt möjliga. Risken är därför att vi kommer att få leva med bristande sysselsättning under lång tid framöver.