Business Cycles, Unemployment and Entrepreneurial Entry: First Evidence from Germany
AbstractWe investigate whether people become more willingly self-employed during boom periods or in recessions and to what extent it is the business cycle or the employment status influencing entry rates into entrepreneurship. Our analysis for Germany reveals that start-up activities are positively influenced by unemployment rates and that the cyclical component of real GDP has a negative effect. This implies that new business formation is counter-cyclical. Further disentangling periods of low and high unemployment periods reveals a "low unemployment retard effect".
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1281.
Length: 25 p.
Date of creation: 2013
Date of revision:
Self-employment; business cycle; unemployment; start-up;
Other versions of this item:
- Michael Fritsch & Alexander Kritikos & Katharina Pijnenburg, 2013. "Business Cycles, Unemployment and Entrepreneurial Entry - First Evidence from Germany," Jena Economic Research Papers 2013-011, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-BEC-2013-03-30 (Business Economics)
- NEP-SBM-2013-03-30 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Andersson & Sierdjan Koster, 2011.
"Sources of persistence in regional start-up rates--evidence from Sweden,"
Journal of Economic Geography, Oxford University Press,
Oxford University Press, vol. 11(1), pages 179-201, January.
- Andersson, Martin & Koster, Sierdjan, 2009. "Sources of Persistence in Regional Start-Up Rates - evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies 177, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
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