Abstract：
Based on China’s real estate industry data covering the 1997-2011 period, the paper studies the effects of new firm formation on employment growth. The results show that: (1) the new firms formation in the real estate industry generates strong positive employment effects at the current period; (2) the new firm formation has positive effects as well as negative effects at the subsequent periods, but has strong positive effects as a whole, and the indirect supply effects are more significant; (3) in the long run, the effect is approximately a U-shaped structure, and the lowest point of the effect will be reached at about 4 or 5 years after the new firms have been started. The empirical results are closely connected with the reality of the real estate industry development and the state of the new firm formation.
2014 
