Clusters of Entrepreneurship

Edward Ludwig Glaeser (), William Kerr () and Giacomo A.M. Ponzetto

No 15377, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Employment growth is strongly predicted by smaller average establishment size, both across cities and across industries within cities, but there is little consensus on why this relationship exists. Traditional economic explanations emphasize factors that reduce entry costs or raise entrepreneurial returns, thereby increasing net returns and attracting entrepreneurs. A second class of theories hypothesizes that some places are endowed with a greater supply of entrepreneurship. Evidence on sales per worker does not support the higher returns for entrepreneurship rationale. Our evidence suggests that entrepreneurship is higher when fixed costs are lower and when there are more entrepreneurial people.

JEL-codes: J00 J2 L0 L1 L2 L6 O3 R2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-geo, nep-hrm and nep-pke
Date: 2009-09
Note: EFG

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Working Paper: Clusters of Entrepreneurship (2009)
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