Table 3.
Main Results. Dependent variable is the employment growth rate, 2000–2007. Coefficients with one, two, and three stars are significant at the 10%, 5%, and 1% levels, respectively, using a two-tailed test. See Table 1 and the data appendix for details on the variables. The instruments used are as follows: the log of mining employment in 1974, indicator variables for mining employment greater than 20 and 100 in 1974, the population density in 1980, and the interaction between log of mining employment and population density. The weak instrument-robust P-value is for the Anderson-Wald F-test statistic; the weak instrument test is the Cragg-Donald Wald F-statistic. The test for the endogeneity of entrepreneurship (i.e., the birth rate) is the GMM distance measure; the test for the endogeneity of the instrument is the Hansen’s J-statistic. See Table B for robustness tests using alternative definitions of entrepreneurship alongside establishment births. Further robustness tests are available from the authors upon request.
| Birth Rate, 1998 | 3.62*** (0.39) | 3.61*** (0.38) | 3.24*** (1.04) | 2.18** (0.97) |
| Predicted employment growth, 2000–07 | 0.61*** (0.11) | 0.55*** (0.1) | 0.64*** (0.13) | 0.63*** (0.12) |
| Lagged Emp Growth, 1990–2000 | 0.2*** (0.038) | 0.22*** (0.045) | 0.21*** (0.041) | 0.23*** (0.047) |
| Log Employment, 2000 | −0.27 (0.43) | −0.22 (0.43) | −0.26 (0.44) | −0.21 (0.44) |
| Log Income, 2000 | −12.2*** (3.43) | −14.1*** (3.18) | −12.9*** (4.37) | −16.8*** (4.37) |
| Density, 2000 | 0.1*** (0.035) | 0.03 (0.029) | 0.1** (0.04) | 0.037** (0.031) |
| HC Share, 2000 | 0.75*** (0.28) | 0.71*** (0.24) | 0.78*** (0.28) | 0.91*** (0.27) |
| Arts Share, 2000 | −1.8** (0.9) | −0.12 (0.78) | 1.81** (0.9) | −0.039** (0.77) |
| BA Share, 2000 | −0.37*** (0.14) | −0.4*** (0.11) | −0.38** (0.14) | −0.377*** (0.12) |
| Pop Growth, 1950–1960 | 0.61 (0.83) | 0.53 (0.72) | 0.72 (0.91) | 0.79 (0.76) |
| Median Age, 2000 | −0.55*** (0.11) | −0.78*** (0.1) | −0.52*** (0.13) | −0.69*** (0.12) |
| Amenity Score | 0.11 (0.14) | −0.27 (0.24) | 0.14 (0.17) | −0.1 (0.26) |
| Distance to MSA | −0.017* (0.009) | −0.004 (0.009) | −0.02 (0.01) | 0.001 (0.01) |
| Marg dist MSA > 250k | −0.004 (0.004) | −0.015*** (0.005) | −0.004 (0.004) | −0.015*** (0.006) |
| Marg dist MSA > 500k | −0.004 (0.004) | −0.002 (0.005) | −0.004 (0.004) | −0.001 (0.005) |
| Marg dist MSA > 1M | 0.003 (0.003) | 0.005 (0.004) | 0.003 (0.004 | 0.002 (0.005) |
| Constant | 129*** (32.8) | 158*** (31.2) | 136*** (42.4) | 193*** (43.7) |
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| N | 3072 | 3072 | 3072 | 3072 |
| R2 | 0.55 | 0.64 | 0.55 | 0.63 |
| F (non-FEs) | 59.0 | 41.0 | 55.2 | 41.7 |
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| Counties | All | All | All | All |
| Fixed Effects | No | State | No | State |
| Full Controls | Yes | Yes | Yes | Yes |
| Regression | OLS | OLS | IV | IV |
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| Weak IV-Robust F -test | — | — | 47.5 | 45.0 |
| Weak IV-Robust P-value | 0.02 | 0.41 | ||
| Endog of E’ship P-value | — | — | 0.55 | 0.17 |
| Endog of IVs P-value | 0.25 | 0.99 | ||