How large are the direct employment effects of new businesses? An empirical investigation

Michael Fritsch (m.fritsch@uni-jena.de) and Antje Weyh

No 2004/05, Freiberg Working Papers from TU Bergakademie Freiberg, Faculty of Economics and Business Administration

Abstract: We analyze the development of employment in start-up cohorts, which is the direct gross employment effect of the new businesses. The data is for West Germany and covers the 1984- 2002 period. While total employment in the cohorts remains above the initial level in manufacturing, we find a pronounced decline of employment below this level in the service sector. Only a small fraction of the firms create a considerable amount of jobs. The contribution that the start-up cohorts of the 1984 - 2002 period made to total employment in 2002 is nearly three times as high in services as in manufacturing.

Keywords: New firms; employment change; start-up cohorts; Unternehmensgründungen; Beschäftigungsentwicklung; Gründungskohorten (search for similar items in EconPapers)
JEL-codes: D21 L10 L29 M13 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tufwps:200405

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