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The Direct Employment Effects of New Businesses in Germany Revisited - An Empirical Investigation for 1976 - 2004

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Author Info
Yvonne Schindele () (Friedrich Schiller University Jena, School of Economics and Business Administration)
Antje Weyh () (Institute for Employment Research, IAB regional Saxony)

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Abstract

Based on an improved and extended database, the Establishment History Panel, we extend the analysis of Fritsch & Weyh (2006) by investigating the development of employment in German start-up cohorts for the period 1976 to 2004. We conïfirm the typical pattern of an initial increasing and then soon decreasing number of employees in start-up cohorts. Furthermore, we provide some of the first evidence for the "liability of aging" phenomena in Germany. Older firms face a relatively high risk of failure. Although only the largest 25% of the surviving entries grow in terms of employment, after 25 years the number of employees in these relatively large businesses strongly declines.

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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 2008-076.

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Date of creation: 10 Oct 2008
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Handle: RePEc:jrp:jrpwrp:2008-076

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Web page: http://www.jenecon.de

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Related research
Keywords: Employment change; new firms; start-up cohorts; liability of agibg;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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