Who Creates New Firms When Local Opportunities Arise?

Shai Bernstein, Emanuele Colonnelli, Davide Malacrino and Timothy McQuade

No 25112, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the characteristics of the individuals who become entrepreneurs when local opportunities arise. We identify local demand shocks by linking fluctuations in global commodity prices to municipality-level agricultural endowments in Brazil. We find that the firm creation response is mostly driven by young and skilled individuals. The characteristics of these responsive entrepreneurs are significantly different from those of average entrepreneurs in the economy. By structurally estimating a novel two-sector model of a local economy, we highlight how the demographic composition of the local population can significantly affect the entrepreneurial responsiveness of the economy.

JEL-codes: E26 J24 L26 O12 O13 O17 O20 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-ent, nep-lma, nep-mac and nep-sbm
Note: CF DEV PR
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Citations: View citations in EconPapers (11)

Published as Shai Bernstein & Emanuele Colonnelli & Davide Malacrino & Tim McQuade, 2021. "Who creates new firms when local opportunities arise?," Journal of Financial Economics, .

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Related works:
Journal Article: Who creates new firms when local opportunities arise? (2022)
Working Paper: Who Creates New Firms When Local Opportunities Arise? (2018)
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