Direct and indirect effects of private- and government-sponsored venture capital

Abstract

Starting from the discourse on the impact of private and governmental venture capital investments, we examine the effects of different types of venture capital on firms’ sales, employment and investment. Our results show that both private and governmental venture capital investments boost firm sales with a delay of 2–3 years. The results suggest that VC impacts sales primarily through efficiency gains and to some extent, investments in physical capital investments, whereas no employment effects can be traced. Finally, we find indications of governmental VC investors being more prone to make follow-up investments in stagnating, non-growing firms than private investors.

Artificial Intelligence for Public Use

Working paperPublication

Lodefalk, M.; Engberg, E.; Lidskog, R.; Tang, A.

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Publication year

2025

Published in

Örebro University School of Business Working Paper

Abstract

This paper investigates the economic and societal impacts of Artificial Intelligence (AI) in the public sector, focusing on its potential to enhance productivity and mitigate labour shortages. Employing detailed administrative data and novel occupational exposure measures, we simulate future scenarios over a 20-year horizon, using Sweden as an illustrative case. Our findings indicate that advances in AI development and uptake could significantly alleviate projected labour shortages and enhance productivity. However, outcomes vary substantially across sectors and organisational types, driven by differing workforce compositions. Complementing the economic analysis, we identify key challenges that hinder AI’s effective deployment, including technical limitations, organisational barriers, regulatory ambiguity, and ethical risks such as algorithmic bias and lack of transparency. Drawing from an interdisciplinary conceptual framework, we argue that AI’s integration in the public sector must address these socio-technical and institutional factors comprehensively. To unlock AI’s full potential, substantial investments in technological infrastructure, human capital development, regulatory clarity, and robust governance mechanisms are essential. Our study thus contributes both novel economic evidence and an integrated societal perspective, informing strategies for sustainable and equitable public-sector digitalisation.

City size, employer concentration, and wage income inequality

Working paperPublication

Halvarsson, D., & Korpi, M.

Publication year

2025

Published in

Institute for Evaluation of Labour Market and Education Policy (IFAU)

Abstract

This study investigates the relationship between the urban wage premium and employer concentration using Swedish full population employer-employee data. Departing from an AKM modeling framework to distinguish worker from firm specific heterogeneity – a measure of rent-sharing – we then measure the urban wage premium using differences in the estimated firm fixed effects at the level of local industries, nested within local labor markets. Our results suggest that labor market employer concentration, as calculated using the Hirschman-Herfindahl index and a leave-one-out instrumental variable design, can account for a significant share of the estimated urban wage premium (UWP). Addressing city-level wage income inequality by applying our model to different segments of the local labor market income distribution, we find that while the UWP pertains to all income segments, it is largest for top-income levels (above the 90th percentile), and within this segment employer concentration also has the largest explanatory power. Thus, while being an important explanatory factor for all percentiles of the local income distribution, a relatively lower employer concentration within larger cities, and vice versa, higher concentration within smaller cities, primarily help explain the variance of top wages within these cities/labor markets.

Artificial intelligence, hiring and employment: job postings evidence from Sweden

Article (with peer review)Publication

Engberg, E., Hellsten, M., Javed, F., Lodefalk, M., Sabolová, R., Schroeder, S., & Tang, A

Publication year

2025

Published in

Applied Economics Letters

Abstract

This paper investigates the impact of artificial intelligence (AI) on hiring and employment, using the universe of job postings published by the Swedish Public Employment Service from 2014 to 2022 and full-population administrative data for Sweden. We exploit a detailed measure of AI exposure according to occupational content and find that establishments exposed to AI are more likely to hire AI workers. Survey data further indicate that AI exposure aligns with greater use of AI services. Importantly, rather than displacing non-AI workers, AI exposure is positively associated with increased hiring for both AI and non-AI roles. In the absence of substantial productivity gains that might account for this increase, we interpret the positive link between AI exposure and non-AI hiring as evidence that establishments are using AI to augment existing roles and expand task capabilities, rather than to replace non-AI workers.

Abstract

Artificial Intelligence for Public Use

Working paperPublication

Lodefalk, M.; Engberg, E.; Lidskog, R.; Tang, A.

Download

Publication year

2025

Published in

Örebro University School of Business Working Paper

Abstract

City size, employer concentration, and wage income inequality

Working paperPublication

Halvarsson, D., & Korpi, M.

Publication year

2025

Published in

Institute for Evaluation of Labour Market and Education Policy (IFAU)

Abstract

Artificial intelligence, hiring and employment: job postings evidence from Sweden

Article (with peer review)Publication

Engberg, E., Hellsten, M., Javed, F., Lodefalk, M., Sabolová, R., Schroeder, S., & Tang, A

Publication year

2025

Published in

Applied Economics Letters

Abstract

Direct and indirect effects of private- and government-sponsored venture capital

Abstract

Similar content

Artificial Intelligence for Public Use

City size, employer concentration, and wage income inequality

Artificial intelligence, hiring and employment: job postings evidence from Sweden

Direct and indirect effects of private- and government-sponsored venture capital

Abstract

Similar content

Artificial Intelligence for Public Use

City size, employer concentration, and wage income inequality

Artificial intelligence, hiring and employment: job postings evidence from Sweden