Arbeitspapier
Business Cycles, Unemployment and Entrepreneurial Entry: Evidence from Germany
We investigate whether people are more willing to become self-employed during boom periods or during recessions and to what extent business cycles or unemployment levels influence entries into entrepreneurship. Our analysis for Germany reveals that there is a positive relationship between unemployment rates and start-up activities. Moreover, new business formation is higher during recessions than in boom periods. This implies that new business formation is counter-cyclical. When disentangling periods of low and high unemployment we find that the effect of unemployment on new business formation is only statistically significant if the level of unemployment is below the trend, indicating a low unemployment retain effect.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 7852
- Classification
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Wirtschaft
Entrepreneurship
Business Fluctuations; Cycles
- Subject
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self-employment
business cycle
unemployment
start-up
- Event
-
Geistige Schöpfung
- (who)
-
Fritsch, Michael
Kritikos, Alexander S.
Pijnenburg, Katharina
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fritsch, Michael
- Kritikos, Alexander S.
- Pijnenburg, Katharina
- Institute for the Study of Labor (IZA)
Time of origin
- 2013
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Regional knowledge, entrepreneurial culture and innovative start-ups over time and space: An empirical investigation