Cristina Carias Presents a Paper at the Schumpeter 2010

 Cristina Carias and Steven Klepper

Cristina Carias, dual degree Ph.D. student in Technological Change and Entrepreneurship (TCE), will present a paper entitled “Entrepreneurship, the Initial Labor Force, and the Location of New Firms”, at the 13th Conference of the International Schumpeter Society on Innovation, Organization, Sustainability and Crises. Carias is co-author of this paper with her Carnegie Mellon advisor Steven Klepper.

This conference will take place at Aalborg University in Denmark on 21-24 June 2010.

A model of the location choice of new firms is developed in which founders locate their firms close to their home region in order to hire workers they know about through their prior employment. The model is tested using a matched employer employee data set for Portugal. Consistent with the model, new Portuguese firms in the same industry as their founder’s prior employer were more likely to locate in their founder’s home region, to hire workers from the founder’s prior employer and other firms in the same region and industry, to employ them longer, and to perform better than other new firms."

Read full version of the paper at: