Start-ups, Long- and Short-Term Survivors and their Effect on Regional Employment Growth

Michael Fritsch () and Florian Noseleit ()

No 2009-081, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We investigate the effects that regional start-up activity has on employment in new and in incumbent businesses. The analysis is performed for West German regions over the 1987-2002 period. It shows that the effects of new businesses on employment in the incumbents are significantly positive and that this indirect effect on incumbent employment leads to more jobs than what is created by the newcomers. We find that the effect of new business formation on incumbents is exclusively driven by start-ups that survive a certain period of time. We draw conclusions for policy and for further research.

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: 2009-10-06
New Economics Papers: this item is included in nep-ent, nep-geo and nep-sbm
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Start-ups, Long- and Short-Term Survivors and their Effect on Regional Employment Growth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2009-081

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