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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)

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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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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 2008-074.

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

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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 2009-11-18.

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