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Start-ups, New Business Employment, and the Effects on Incumbents: Who Contributes the Larger Share?

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Author Info
Michael Fritsch () (Friedrich Schiller University Jena, School of Economics and Business Administration)
Florian Noseleit () (Friedrich Schiller University Jena, School of Economics and Business Administration)

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Abstract

We investigate the effects that new business formation has on employment in incumbent firms and compare it to the development in the start-ups. The analysis is performed for West German regions over the 1984-2002 period. It shows that the employment effects of new businesses on the incumbents are significantly positive. Moreover, we find indication that these effects on incumbents are considerably larger than the employment that is directly generated in the start-ups. We draw conclusions for policy and for further research.

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Publisher Info
Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek in its series Jena Economic Research Papers in Economics with number 2008-068.

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Date of creation: 10 Sep 2008
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Handle: RePEc:jrp:jrpwrp:2008-068

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Related research
Keywords: Entrepreneurship; new business formation; regional development; direct and indirect effects;

Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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This page was last updated on 2009-12-3.

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