This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span . We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about eight years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.Acknowledgements: the authors would like to thank

This paper investigates whether a high level of new business formation in a region stimulates employment growth in that region. We look at the lag structure of these effects using a data set covering a fairly large time span . We find that indirect effects of new firm births on subsequent employment growth are stronger than direct effects. However, indirect effects only occur about eight years after new firm formation. In particular, and unlike the findings from studies of other countries using a similar approach, positive indirect effects do not seem to tail off in the Portuguese case. This is likely due to a general pattern of results in which lags appear to be longer for Portugal. In view of these results, we suggest that the lag times and magnitudes the effects on new firm formation on subsequent employment growth are likely dependent on the types and qualities of start-ups.Acknowledgements: the authors would like to thank

This paper studies the evolution of the functional distribution of income in Portugal. The changes in the labour share of income result from two important trends, namely the evolutions of labour productivity and the average wage. And the global trends of these variables at the national level are a weighted average of the corresponding trends in the different sectors or industries, each one with its own peculiarities and deserving an attentive analysis. All these trends are quantified and explained, using several databases covering the Portuguese case in a long run period, 1953-2017

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