How Much of a Socialist Legacy? The Reemergence of Entrepreneurship in the East German Transformation to a Market Economy
Michael Fritsch (),
Elisabeth Bublitz (),
Alina Rusakova () and
Michael Wyrwich ()
Additional contact information
Alina Rusakova: School of Economics and Business Administration, Friedrich-Schiller-University Jena
Authors registered in the RePEc Author Service: Alina Sorgner
No 2012-042, Jena Economic Research Papers from Friedrich-Schiller-University Jena
The 40 years of socialist regime in East Germany were characterized by a massive anti-entrepreneurship policy. We investigate the reemergence of entrepreneurship in East Germany during its transformation to a market economy following the collapse of the East German state in 1989. It took about 15 years until self-employment levels in East Germany reached those of West Germany. Despite this catch up, we find a number of peculiarities in East German self-employment that appear to be a continuing legacy of the socialist period. In particular, older and better-educated East Germans have a relatively low propensity for starting an own business. Moreover, East German workers tend to have a lower variety of skills than their West German counterparts, which could explain a lower propensity for start up in the early years after reunification. Despite this socialist imprint, we also find considerable continuity in the levels of self-employment in the 1920s and those after transition to a market economy, suggesting the existence of a long-lasting regional entrepreneurship culture.
Keywords: Entrepreneurship; self-employment; new business formation; transformation; East Germany (search for similar items in EconPapers)
JEL-codes: L26 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent, nep-his, nep-sbm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed
Published as "How much of a socialist legacy? The re-emergence of entrepreneurship in the East German transformation to a market economy", in: Small Business Economics 43 (2012), 427-446.
Downloads: (external link)
Journal Article: How much of a socialist legacy? The re-emergence of entrepreneurship in the East German transformation to a market economy (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2012-042
Access Statistics for this paper
More papers in Jena Economic Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().