TY - JOUR T1 - Private Equity Investment and Local Employment Growth: <em>A County-Level Analysis</em> JF - The Journal of Alternative Investments DO - 10.3905/jai.2019.1.082 SP - jai.2019.1.082 AU - Joshua Cox AU - Bronwyn Bailey Y1 - 2019/11/07 UR - https://pm-research.com/content/early/2019/11/07/jai.2019.1.082.abstract N2 - This study examines the relationship between private equity investment and local employment growth. Using a sample of over 3,000 US counties, we estimate the effect of private equity investment volume and demographic determinants of employment growth (labor supply, labor quality, labor cost, unionization, agglomeration, industry concentration, and regional geography) on employment changes from 2011 to 2014. Controlling for these demographic factors, private equity investment shows a positive correlation with employment changes.TOPIC: Private equityKey Findings• The study finds a positive association between private equity investment and employment growth. Results indicate that for each $1 million in additional private equity investment, a little more than 1.3 new jobs are created.• Results imply that private equity investment could create positive externalities. Statistical tests using county-wide employment data suggest that company specific private equity investment job-creation effects spill over from the company receiving financing to the local economy. ER -