Survival of Spinoffs and Other Startups: First Evidence for the Private Sector in Germany, 1976-2008
AbstractUsing a 50 percent sample of all establishments in the German private sector, we report that spinoffs are larger and initially employ more skilled and more experienced workers than other startups. Controlling for these and other differences, we find that spinoffs are less likely to exit than other startups. We show that in West and East Germany and in all sectors investigated pulled spinoffs (where the parent company continues after they are founded) generally have the lowest exit hazards, followed by pushed spinoffs (where the parent company stops operations). The difference between both types of spinoffs is particularly pronounced in the first three years. Contrary to expectations, intra-industry spinoffs are not found to have lower exit hazards in our sample.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7542.
Length: 41 pages
Date of creation: Aug 2013
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Other versions of this item:
- Fackler, Daniel & Schnabel, Claus, 2013. "Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976-2008," Discussion Papers 84, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Fackler, Daniel & Schnabel, Claus, 2013. "Survival of spinoffs and other startups: First evidence for the private sector in Germany, 1976 - 2008," IWQW Discussion Paper Series 06/2013, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-BEC-2013-08-31 (Business Economics)
- NEP-ENT-2013-08-31 (Entrepreneurship)
- NEP-EUR-2013-08-31 (Microeconomic European Issues)
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