Where do jobs come from? II

Here’s a nice follow-up to this post on jobs via Marginal Revolution.

The chart on Mother Jones blog shows a declining trend in the number of new jobs from startups since the late 90s.

It seems there are a few possible explanations.

Maybe startups are creating fewer jobs in the U.S. because they are hiring overseas.

Perhaps there are just fewer startups.  Maybe fewer startups are a demographic artifact.  It seems like baby boomers may have been around peak startup age in the 90s.

Or, maybe this evidence supports Nothhaft’s contention that government regulation is suppressing startup activity.  Regulation certainly doesn’t seem to help startup activity.  Perhaps regulation is good, but as always, there are trade-offs.  Startup activity and fewer jobs may be one of those trade-offs.



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