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By Sergey Anokhin, Jaume Franquesa and Jino Mwaka


Relocation (transience) into the area of already existing ventures currently operating elsewhere directly affects the stock of gainfully employed entrepreneurial talent. Our longitudinal study of 88 Ohio counties over a 4-year period reveals some of the reasons behind this phenomenon. We identify several groups of local policy variables facilitating transience processes. Net rates of transience are positively associated with the level of educational attainment and negatively related to income tax rates in a focal county. Rates of transience are also related to sales and property tax rates, although the direction of these effects depends on average personal income levels in the county. Finally, past start-up rates are found to positively affect current rates of entrepreneurial transience

Topics: Entrepreneurial transience, environment, public policy and entrepreneurship
Year: 2013
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