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Direct and indirect effects of new businesses on regional employment - An empirical analysis

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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)

  • Yvonne Schindele

    ()
    (Friedrich Schiller University Jena, School of Economics and Business Administration)

Abstract

We analyze different types of effects that new businesses may have on regional employment. We introduce different measures for employment change by separating employment change in incumbent businesses and employment change in new businesses. There are pronounced differences between regions with regard to the different employment effects. The average indirect employment effects of new business formation on incumbent employment are positive and are considerably larger than the employment that is directly generated in the new businesses.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-074.

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Date of creation: 01 Oct 2008
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Handle: RePEc:jrp:jrpwrp:2008-074

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

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Cited by:
  1. André van Stel & Mickey Folkeringa & Sierdjan Koster, 2010. "Start-ups as drivers of market mobility: An analysis at the region-sector level for the Netherlands," Scales Research Reports H200905, EIM Business and Policy Research.
  2. Michael Fritsch & Florian Noseleit, 2013. "Start-ups, long- and short-term survivors, and their contribution to employment growth," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 719-733, September.
  3. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, 06.

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