Trends in Firm Entry and New Entrepreneurship in Canada

Shutao Cao, Mohanad Salameh, Mai Seki and Pierre St-Amant

Discussion Papers from Bank of Canada

Abstract: Recently released data show downward trends for both the firm entry rate and the rate of new entrepreneurship since the early 1980s in Canada. This paper documents these trends and discusses potential explanations. A shift-share analysis suggests that changes to Canada’s industrial and demographic structures cannot explain the long-term downward trends, although population aging accounts for part of the decline in new entrepreneurship since around 2000. The paper also discusses other factors potentially contributing to the downward trends: increased industrial concentration, changing labour market conditions, an increased college wage premium and higher student debt. In-depth analysis of these factors is left for future research.

Keywords: Firm dynamics; Market structure and pricing; Productivity (search for similar items in EconPapers)
JEL-codes: L11 M13 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2015
New Economics Papers: this item is included in nep-age, nep-bec, nep-com, nep-ent, nep-ino and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Trends in Firm Entry and New Entrepreneurship in Canada (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocadp:15-11

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