Table 7.
Robustness. 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 the Table 1 and the data appendix for details on the variables. 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.
| Birth Rate, 1998 | — | 3.79*** (0.36) | — | 3.32* (1.72) |
| Proprietorship Share, 1998 | −0.12 (0.14) | −0.13 (0.13) | −0.14 (0.32) | −0.6** (0.3) |
| Proprietorship Growth Rate, 1988–98 | 0.63*** (0.17) | 0.67*** (0.14) | 4.02 (2.56) | 1.4 (1.49) |
| Small Business Employment Share, 1998 | 0.7*** (0.19) | −0.31 (0.19) | −1.46 (1.18) | −0.13 (0.81) |
| Predicted Employment Growth, 2000–07 | 0.81*** (0.12) | 0.69*** (0.11) | 1.29*** (0.36) | 0.76** (0.32) |
| Lagged Employment Growth, 1990–2000 | 0.18*** (0.047) | 0.12*** (0.038) | −0.27 (0.35) | 0.043 (0.18) |
| Log Employment, 2000 | 0.13 (0.45) | −0.33 (0.42) | −0.17 (0.76) | −0.26 (0.44) |
| Log Income, 2000 | −13.3*** (3.94) | −10.1*** (3.5) | 0.98 (12.7) | −10.8 (8.14) |
| Density, 2000 | 0.09** (0.037) | 0.08** (0.035) | 0.04 (0.08) | 0.06 (0.045) |
| HC Share, 2000 | 0.91*** (0.27) | 0.67*** (0.25) | 0.3 (0.55) | 0.74** (0.36) |
| Arts Share, 2000 | −1.78* (0.93) | −1.96** (0.86) | −2.62** (1.33) | −2.07** (0.91) |
| BA Share, 2000 | −0.42*** (0.14) | −0.33** (0.13) | −0.14 (0.27) | −0.34* (0.18) |
| Population Growth, 1950–1960 | 1.99** (0.91) | 0.93 (0.78) | 4.18* (2.23) | 1.28 (1.72) |
| Median Age, 2000 | −0.35*** (0.11) | −0.52*** (0.1) | −0.23 (0.16) | −0.44*** (0.14) |
| Amenity Score | 0.2 (0.15) | 0.016 (0.14) | −0.49 (0.66) | 0.09 (0.37) |
| Distance to MSA | −0.017* (0.009) | −0.018** (0.008) | −0.019 (0.015) | −0.017* (0.009) |
| Marginal distance to MSA > 250k | −0.004 (0.004) | −0.001 (0.004) | 0.006 (0.009) | 0.003 (0.005) |
| Marginal distance to MSA > 500k | −0.002 (0.004) | −0.004 (0.004) | −0.003 (0.006) | −0.004 (0.004) |
| Marginal distance to MSA > 1M | 0.001 (0.004) | 0.004 (0.003) | 0.009 (0.008) | 0.003 (0.005) |
| Constant | 136*** (38) | 109*** (33.4) | −4.54 (127) | 118 (81.7) |
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| N | 3072 | 3072 | 3072 | 3072 |
| R2 | 0.53 | 0.58 | — | 0.56 |
| F | 49.1 | 55.6 | 17.6 | 45.4 |
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| Counties | All | All | All | All |
| Fixed Effects | No | No | No | No |
| Regression | OLS | OLS | IV | IV |
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| Weak ID F-test | 4.72 | 1.25 | ||
| Weak IV-robust p-value | — | — | 0.5 | 0.046 |
| Endogeneity of Entrepreneurship p-value | — | — | 0.001 | 0.005 |
| Endogeneity of IVs p-value | — | 0.93 | ||