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The Impact of Regional Age Structure on Entrepreneurship

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  • Werner Bönte
  • Oliver Falck
  • Stephan Heblich

Abstract

Empirical studies based on individual data have found an inverse U-shaped relationship between age and the decision to start a business. Other studies have shown that becoming an entrepreneur is a regional event, with potential entrepreneurs benefiting from their local networks. This article links both strands of literature by introducing age-specific peer effects. Using changes in the age distribution of the population of western German regions over time, we found-in accordance with microlevel analyses-an inverse U-shaped relationship between the regional age structure and start-up activity in a region. Moreover, our findings suggest that the age-specific likelihood of becoming an entrepreneur changes with the size of the age cohort, pointing to the existence of age-specific peer effects. Copyright (c) 2009 Clark University.

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Bibliographic Info

Article provided by Clark University in its journal Economic Geography.

Volume (Year): 85 (2009)
Issue (Month): 3 (07)
Pages: 269-287

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Handle: RePEc:bla:ecgeog:v:85:y:2009:i:3:p:269-287

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Cited by:
  1. Korpi, Martin & Hedberg, Charlotta & Pettersson, Katarina, 2013. "Immigrant Women and Entrepreneurship: A Study of the Health Care Sector in Sweden, 2002-2006," SULCIS Working Papers, Stockholm University Linnaeus Center for Integration Studies - SULCIS 2013:3, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  2. Edward Glaeser & William Kerr, 2008. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," Working Papers, Center for Economic Studies, U.S. Census Bureau 08-37, Center for Economic Studies, U.S. Census Bureau.
  3. Block, J.H. & Thurik, A.R. & van der Zwan, P.W. & Walter, S., 2010. "Business Takeover or New Venture? Individual and Environmental Determinants from a Cross-Country Study," ERIM Report Series Research in Management, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasm ERS-2010-042-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  4. Backman, Mikaela & Karlsson, Charlie, 2013. "Exploration of Wisdom Ages: Firm survival," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 339, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Michael Wyrwich, 2013. "Ready, set, go! Why are some regions entrepreneurial jump-starters?," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2013-037, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  6. Tristan Boyer & Regis Blazy, 2013. "Born to be alive? The survival of innovative and non-innovative French micro start-ups," Working Papers, Department of Research, Ipag Business School 2013-012, Department of Research, Ipag Business School.
  7. Erik Monsen & Prashanth Mahagaonkar & Christian Dienes, 2010. "Entrepreneurship in India - The Question of Occupational Transition," Schumpeter Discussion Papers, Universitätsbibliothek Wuppertal, University Library sdp10007, Universitätsbibliothek Wuppertal, University Library.
  8. Audretsch, David B. & Falck, Oliver & Heblich, Stephan, 2011. "Who’s got the aces up his sleeve? Functional specialization of cities and entrepreneurship," Munich Reprints in Economics, University of Munich, Department of Economics 20179, University of Munich, Department of Economics.
  9. Arntz, Melanie & Gregory, Terry, 2014. "What old stagers could teach us: Examining age complementarities in regional innovation systems," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 14-050, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Michael Wyrwich, 2011. "Knowledge intensive Entrepreneurship across regions: Makes being a new industry a difference?," ERSA conference papers ersa11p1711, European Regional Science Association.
  11. Giulio Cainelli & Donato Iacobucci & Alessandra Micozzi, 2013. "Determinants of territorial differences in entrepreneurial rates. An empirical analysis of Italian local systems," ERSA conference papers ersa13p1173, European Regional Science Association.
  12. Darja Reuschke, 2011. "Self-Employment and Geographical Mobility in Germany," SOEPpapers on Multidisciplinary Panel Data Research 417, DIW Berlin, The German Socio-Economic Panel (SOEP).
  13. Sieds, 2012. "Complete Volume LXVI n.1 2012," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 0(1), pages 1-296.
  14. E. Stam & R. Martin, 2012. "When High Tech ceases to be High Growth: The Loss of Dynamism of the Cambridgeshire Regio," Working Papers, Utrecht School of Economics 12-10, Utrecht School of Economics.

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