Startups and Employment Following the COVID-19 Pandemic: A Calculator

Vincent Sterk and SedlÃ¡Ä ek, Petr
Authors registered in the RePEc Author Service: Petr Sedlacek

No 14671, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Early indicators suggest that startup activity is heavily disrupted by the COVID-19 pandemic and the associated lockdown. At the same time, empirical evidence has shown that such disturbances may have long-lasting effects on aggregate employment. This paper presents a calculator which can be used to compute these effects under different scenarios regarding (i) the number of startups, (ii) the growth potential of startups, and (iii) the survival rate of young firms. We find that employment losses can be substantial and last for more than a decade, even when the assumed slump in startup activity is only short-lived.

Keywords: Startups; Macroeconomics; Employment; Covid-19 (search for similar items in EconPapers)
JEL-codes: D22 E23 E24 I10 (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-ent and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Journal Article: Startups and employment following the COVID-19 pandemic: a calculator (2022)
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