Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: Freiberger Arbeitspapiere ; No. 2004/05

Classification
Wirtschaft
Firm Behavior: Theory
Market Structure, Firm Strategy, and Market Performance: General
Firm Objectives, Organization, and Behavior: Other
New Firms; Startups
Subject
New firms
employment change
start-up cohorts
Unternehmensgründungen
Beschäftigungsentwicklung
Gründungskohorten
Unternehmensgründung
Beschäftigungseffekt
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Fritsch, Michael
Weyh, Antje
Event
Veröffentlichung
(who)
Technische Universität Bergakademie Freiberg, Fakultät für Wirtschaftswissenschaften
(where)
Freiberg
(when)
2004

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Fritsch, Michael
  • Weyh, Antje
  • Technische Universität Bergakademie Freiberg, Fakultät für Wirtschaftswissenschaften

Time of origin

  • 2004

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