Investigating the Anatomy of the Employment Effects of New Business Formation

Michael Fritsch () and Florian Noseleit ()

No 2009-001, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: Recent empirical research has found that the effect of new business formation on employment emerges over a period of about ten years and has identified a 'wave' pattern of these effects. In this study, we decompose the overall contribution of new business formation on employment change into direct and indirect effects. The results indicate that indirect effects of new business formation are quantitatively much more important than the direct effects. Furthermore, we find that regional differences of the employment change generated by new business formation can to a large part be explained by respective differences of the indirect effects. Hence, the interaction of the start-ups with their regional environment plays a great role for explaining their impact on regional development.

Keywords: Entrepreneurship; new business formation; regional development; direct and indirect effects (search for similar items in EconPapers)
JEL-codes: L26 M13 O1 O18 R11 (search for similar items in EconPapers)
Date: 2009-01-05
New Economics Papers: this item is included in nep-bec, nep-ent, nep-geo and nep-lab
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2009/wp_2009_001.pdf (application/pdf)

Related works:
Journal Article: Investigating the anatomy of the employment effect of new business formation (2013)
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: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2009-001

Access Statistics for this paper

More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().