Business Cycles, Unemployment and Entrepreneurial Entry - First Evidence from Germany
AbstractWe investigate whether people become more willingly self-employed during boom periods or in recessions and to what extent it is the business cycle or the employment status influencing entry rates into entrepreneurship. Our analysis for Germany reveals that start-up activities are positively influenced by unemployment rates and that the cyclical component of real GDP has a negative effect. This implies that new business formation is counter-cyclical. Further disentangling periods of low and high unemployment periods reveals a "low unemployment retard effect".
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2013-011.
Date of creation: 20 Mar 2013
Date of revision:
Self-employment; business cycle; unemployment; start-up;
Other versions of this item:
- Michael Fritsch & Alexander S. Kritikos & Katharina Pijnenburg, 2013. "Business Cycles, Unemployment and Entrepreneurial Entry: First Evidence from Germany," Discussion Papers of DIW Berlin 1281, DIW Berlin, German Institute for Economic Research.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-23 (All new papers)
- NEP-BEC-2013-03-23 (Business Economics)
- NEP-ENT-2013-03-23 (Entrepreneurship)
- NEP-EUR-2013-03-23 (Microeconomic European Issues)
- NEP-MAC-2013-03-23 (Macroeconomics)
- NEP-SBM-2013-03-23 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Andersson & Sierdjan Koster, 2011.
"Sources of persistence in regional start-up rates--evidence from Sweden,"
Journal of Economic Geography,
Oxford University Press, vol. 11(1), pages 179-201, January.
- Andersson, Martin & Koster, Sierdjan, 2009. "Sources of Persistence in Regional Start-Up Rates - evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation 177, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
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