Venture Capital Availability and Labor Market Performance around the World

This paper studies the effects of venture capital on the performance of the labor market. Using data from a much larger sample of countries than previous papers, it finds more readily available venture capital to favorably affect both the unemployment and the employment rate. The magnitude of the estimated effects is substantial. We control for both endogeneity of venture capital availability and most major determinants of labor market performance. The results are robust to variations in specification.