Reducing Start‐up Costs for New Firms: The Double Dividend on the Labor Market*

Uwe Dulleck, Paul Frijters and Rudolf Winter‐Ebmer
Authors registered in the RePEc Author Service: Rudolf Winter-Ebmer

Scandinavian Journal of Economics, 2006, vol. 108, issue 2, 317-337

Abstract: Starting a firm with expansive potential is an option for educated and high‐skilled workers. If there are labor market frictions, this additional option can be seen as reducing the chances of ending up in a low‐wage job and hence as increasing the incentives for education. In a matching model, we show that reducing the start‐up costs for new firms results in higher take‐up rates of education. It also gives rise—through a thick‐market externality—to higher rates of job creation for high‐skilled labor as well as average match productivity. We provide empirical evidence to support our argument.

Date: 2006
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Citations: View citations in EconPapers (12)

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https://doi.org/10.1111/j.1467-9442.2006.00455.x

Related works:
Working Paper: Reducing Start-Up Costs for New Firms: The Double Dividend on the Labour Market (2004)
Working Paper: Reducing Start-up Costs for New Firms: The Double Dividend on the Labor Market (2003)
Working Paper: Reducing Start-Up Costs for New Firms: The Double Dividend on the Labour Market (2003)
Working Paper: Reducing start-up costs for New Firms: The double dividend on the labor market (2003)
Working Paper: Reducing Start-up costs for New Firms: The Double Dividend on the Labor Market (2003)
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