Arbeitspapier

Start-ups, long- and short-term survivors and their effect on regional employment growth

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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.

Language: Englisch

Bibliographic citation: Series: Jena Economic Research Papers ; No. 2009,081

Classification: Wirtschaft
Entrepreneurship
New Firms; Startups
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

Subject: Entrepreneurship
new business formation
regional development
direct and indirect effects
Unternehmensgründung
Unternehmensentwicklung
Beschäftigungseffekt
Regionale Entwicklung
Deutschland

Event: Geistige Schöpfung

(who): Fritsch, Michael
Noseleit, Florian

Event: Veröffentlichung

(who): Friedrich Schiller University Jena and Max Planck Institute of Economics

(where): Jena

(when): 2009

Handle: http://hdl.handle.net/10419/32572

Last update: 10.03.2025, 11:44 AM CET

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Object type

Arbeitspapier

Associated

Fritsch, Michael
Noseleit, Florian
Friedrich Schiller University Jena and Max Planck Institute of Economics

Time of origin

2009

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