Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?

Edward Ludwig Glaeser () and William Kerr ()

No 14407, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Why are some places more entrepreneurial than others? We use Census Bureau data to study local determinants of manufacturing startups across cities and industries. Demographics have limited explanatory power. Overall levels of local customers and suppliers are only modestly important, but new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961). Abundant workers in relevant occupations also strongly predict entry. These forces plus city and industry fixed effects explain between sixty and eighty percent of manufacturing entry. We use spatial distributions of natural cost advantages to address partially endogeneity concerns

JEL-codes: J2 L0 L1 L2 L6 O3 R2 (search for similar items in EconPapers)
Date: 2008-10
Note: IO
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w14407.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain? (2008)
Working Paper: Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain? (2008)
Journal Article: Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain? (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:14407

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w14407
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().