IDEAS home Printed from https://ideas.repec.org/p/iab/iabdpa/200904.html
   My bibliography  Save this paper

What makes start-ups out of unemployment different?

Author

Listed:
  • Schanne, Norbert

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Weyh, Antje

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"'What makes start-ups out of unemployment different?' To answer this question we formulate a theoretical sketch for start-up activity out of unemployment. Furthermore, we estimate spatial autoregressive models for the regional start-up rates out of unemployment as well as out of employment with German data from 1999 to 2004 at the NUTS3-level. Characteristics describing the populations of potential entrepreneurs as well as agglomeration externalities have a similar impact on both start-up rates. They are, however, affected in different ways by the regional wage level and the probability of entrepreneurial success. Moreover, the local impact of these determinants is amplified by spatial spillover and spatial feedback effects in particular for the start-up rate out of unemployment." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Schanne, Norbert & Weyh, Antje, 2009. "What makes start-ups out of unemployment different?," IAB-Discussion Paper 200904, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200904
    as

    Download full text from publisher

    File URL: https://doku.iab.de/discussionpapers/2009/dp0409.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Georgarakos, Dimitris & Tatsiramos, Konstantinos, 2009. "Entrepreneurship and survival dynamics of immigrants to the U.S. and their descendants," Labour Economics, Elsevier, vol. 16(2), pages 161-170, April.
    2. Martin Carree, 2002. "Does Unemployment Affect the Number of Establishments? A Regional Analysis for US States," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 389-398.
    3. Jean‐Marc Falter, 2007. "Entrepreneurship and Intergenerational Links in Switzerland," LABOUR, CEIS, vol. 21(1), pages 121-134, March.
    4. Michael Fritsch & Oliver Falck, 2007. "New Business Formation by Industry over Space and Time: A Multidimensional Analysis," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 157-172.
    5. de Wit, Gerrit, 1993. "Models of Self-Employment in a Competitive Market," Journal of Economic Surveys, Wiley Blackwell, vol. 7(4), pages 367-397, December.
    6. Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
    7. Pfeiffer, Friedhelm & Reize, Frank, 2000. "Business start-ups by the unemployed -- an econometric analysis based on firm data," Labour Economics, Elsevier, vol. 7(5), pages 629-663, September.
    8. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669, Elsevier.
    9. Audretsch, David B. & Fritsch, Michael, 1993. "A Note on the Measurement of Entry Rates," Freiberg Working Papers 1993/05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    10. Marco Caliendo & Alexander Kritikos, 2010. "Start-ups by the unemployed: characteristics, survival and direct employment effects," Small Business Economics, Springer, vol. 35(1), pages 71-92, July.
    11. Hyytinen, Ari & Ilmakunnas, Pekka, 2004. "Entrepreneurial Aspirations," Discussion Papers 890, The Research Institute of the Finnish Economy.
    12. Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
    13. Segarra-Blasco, Agusti & Callejon, Maria, 2000. "Geographical Determinants Of The Creation Of Manufacturing Firms: The Regions Of Spain," ERSA conference papers ersa00p300, European Regional Science Association.
    14. Su-wan Wang, 2006. "Determinants of New Firm Formation in Taiwan," Small Business Economics, Springer, vol. 27(4), pages 313-321, December.
    15. repec:hal:wpspec:info:hdl:2441/10191 is not listed on IDEAS
    16. Michael Fritsch, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 525-542, December.
    17. Marc Cowling, 2000. "Are entrepreneurs different across countries?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(12), pages 785-789.
    18. Eric A. Nerlinger & Franz-Josef Bade, 2000. "The spatial distribution of new technology-based firms: Empirical results for West-Germany," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 155-176.
    19. Esteban Lafuente & Yancy Vaillant & Josep Rialp, 2007. "Regional Differences in the Influence of Role Models: Comparing the Entrepreneurial Process of Rural Catalonia," Regional Studies, Taylor & Francis Journals, vol. 41(6), pages 779-796.
    20. Vinod Sutaria & Donald A. Hicks, 2004. "New firm formation: Dynamics and determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 241-262, June.
    21. Joachim Wagner & Rolf Sternberg, 2004. "Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 219-240, June.
    22. Zissimopoulos, Julie M. & Karoly, Lynn A., 2007. "Transitions to self-employment at older ages: The role of wealth, health, health insurance and other factors," Labour Economics, Elsevier, vol. 14(2), pages 269-295, April.
    23. Miyase Yesim Köksal, 2003. "Regional Variation in New Firm Formation in Turkey: Cross-Section and Panel Data Evidence," ERSA conference papers ersa03p263, European Regional Science Association.
    24. Niefert, Michaela & Tchouvakhina, Margarita, 2006. "Aus der Not geboren? Besondere Merkmale und Determinanten von Gründungen aus der Arbeitslosigkeit," ZEW Discussion Papers 06-010, ZEW - Leibniz Centre for European Economic Research.
    25. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    26. R T Hamilton, 1989. "Unemployment and Business Formation Rates: Reconciling Time-Series and Cross-Section Evidence," Environment and Planning A, , vol. 21(2), pages 249-255, February.
    27. Christine Tamasy, 2006. "Determinants of regional entrepreneurship dynamics in contemporary Germany: A conceptual and empirical analysis," Regional Studies, Taylor & Francis Journals, vol. 40(4), pages 365-384.
    28. Phillip Kim & Howard Aldrich & Lisa Keister, 2006. "Access (Not) Denied: The Impact of Financial, Human, and Cultural Capital on Entrepreneurial Entryin the United States," Small Business Economics, Springer, vol. 27(1), pages 5-22, August.
    29. Elisabet Berglund & Kurt Brännäs, 2001. "Plants' entry and exit in Swedish municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(3), pages 431-448.
    30. Harry H. Kelejian & Dennis P. Robinson, 1993. "A Suggested Method Of Estimation For Spatial Interdependent Models With Autocorrelated Errors, And An Application To A County Expenditure Model," Papers in Regional Science, Wiley Blackwell, vol. 72(3), pages 297-312, July.
    31. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    32. Maria Kontos, 2003. "Self-employment policies and migrants' entrepreneurship in Germany," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(2), pages 119-135, January.
    33. Kapoor, Mudit & Kelejian, Harry H. & Prucha, Ingmar R., 2007. "Panel data models with spatially correlated error components," Journal of Econometrics, Elsevier, vol. 140(1), pages 97-130, September.
    34. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    35. Heiko Bergmann & Rolf Sternberg, 2007. "The Changing Face of Entrepreneurship in Germany," Small Business Economics, Springer, vol. 28(2), pages 205-221, March.
    36. Ekelund, Jesper & Johansson, Edvard & Jarvelin, Marjo-Riitta & Lichtermann, Dirk, 2005. "Self-employment and risk aversion--evidence from psychological test data," Labour Economics, Elsevier, vol. 12(5), pages 649-659, October.
    37. Esma Gaygisiz & Miyase Yesim Koksal, 2003. "Regional Variation In New Firm Formation In Turkey: Cross-Section And Panel Data Evidence," ERC Working Papers 0308, ERC - Economic Research Center, Middle East Technical University, revised Aug 2003.
    38. Reinhold Grotz & Udo Brixy, 2003. "Regional Patterns and Determinants of the Success of New Firms in Western Germany," ERSA conference papers ersa03p270, European Regional Science Association.
    39. Caliendo, Marco & Uhlendorff, Arne, 2008. "Self-Employment Dynamics, State Dependence and Cross-Mobility Patterns," IZA Discussion Papers 3900, Institute of Labor Economics (IZA).
    40. repec:hal:spmain:info:hdl:2441/10191 is not listed on IDEAS
    41. Ritsila, Jari & Tervo, Hannu, 2002. "Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland," Small Business Economics, Springer, vol. 19(1), pages 31-40, August.
    42. Ari Hyytinen & Pekka Ilmakunnas, 2007. "Entrepreneurial Aspirations: Another Form of Job Search?," Small Business Economics, Springer, vol. 29(1), pages 63-80, June.
    43. Frank G. van Oort & Oedzge A. L. C. Atzema, 2004. "On the conceptualization of agglomeration economies: The case of new firm formation in the Dutch ICT sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 263-290, June.
    44. Udo Brixy & Reinhold Grotz, 2007. "Regional patterns and determinants of birth and survival of new firms in Western Germany," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(4), pages 293-312, July.
    45. Georgios Fotopoulos & Nigel Spence, 1999. "Spatial Variations in New Manufacturing Plant Openings: Some Empirical Evidence from Greece," Regional Studies, Taylor & Francis Journals, vol. 33(3), pages 219-229.
    46. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schanne, Norbert & Thoma, Oliver, 2015. "Erwerbstätige ALG II-Bezieher in Hessen 2007 - 2014," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Hessen 201502, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Oliver Ludewig & Antje Weyh, 2011. "Die regionale Arbeitsplatzdynamik in Deutschland – Mehr Bewegung im Osten," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 31(1), pages 27-56, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan Brunow & Peter Nijkamp, 2019. "Firm Formation And Industrial Agglomeration Under Monopolistic Competition - A Study On German Regions," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 13(2), pages 1-25, DECEMBER.
    2. Stephan Brunow & Peter Nijkamp, 2013. "Firm Formation and Agglomeration under Monopolistic Competition," Tinbergen Institute Discussion Papers 13-134/VIII, Tinbergen Institute.
    3. Enrico Santarelli & Hien Thu Tran, 2012. "Growth of Incumbent Firms and Entrepreneurship in V ietnam," Growth and Change, Wiley Blackwell, vol. 43(4), pages 638-666, December.
    4. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    6. Backman, Mikaela & Karlsson, Charlie, 2013. "Who says life is over after 55? Entrepreneurship and an aging population," Working Paper Series in Economics and Institutions of Innovation 325, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    7. Mikaela Backman, 2013. "Who says life is over after 55? - New firm formation and an ageing population," ERSA conference papers ersa13p58, European Regional Science Association.
    8. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    9. Michael Wyrwich, 2012. "Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy," Economic Geography, Taylor & Francis Journals, vol. 88(4), pages 423-445, October.
    10. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, vol. 41(1), pages 154-166.
    11. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    12. Calá, Carla Daniela, 2015. "Firm dynamics in developing countries: a single policy for all regions?," Nülan. Deposited Documents 2650, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    13. Christian Hundt & Rolf Sternberg, 2016. "Explaining new firm creation in Europe from a spatial and time perspective: A multilevel analysis based upon data of individuals, regions and countries," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 223-257, June.
    14. Barinova, Vera (Баринова, Вера) & Zemtsov, Stepan (Земцов, Степан) & Tsareva, Yulia (Царева, Юлия), 2018. "Review of Empirical Studies of Factors of Entrepreneurial Activity [Обзор Эмпирических Исследований Факторов Предпринимательской Активности]," Working Papers 031830, Russian Presidential Academy of National Economy and Public Administration.
    15. Iman Cheratian & Saleh Goltabar & Carla Daniela Calá, 2021. "Spatial drivers of firm entry in Iran," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 463-496, April.
    16. Nakil Sung & Jaekyung Kim, 2020. "Entry and exit of small self-employed businesses in Korea’s service industries," Small Business Economics, Springer, vol. 54(1), pages 303-322, January.
    17. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    18. Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 299-315, June.
    19. David B. Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2015. "Regional unemployment structure and new firm formation," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 115-138, November.
    20. Shaoming Cheng & Huaqun Li, 2010. "The effects of unemployment on new firm formation revisited: Does space matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 97-120, November.

    More about this item

    Keywords

    Bundesrepublik Deutschland ; berufliche Selbständigkeit ; Determinanten ; Lohnhöhe ; Persönlichkeitsmerkmale ; regionale Faktoren ; regionale Verteilung ; Arbeitslose ; Unternehmensgründung ; 1999-2004;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:200904. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/iabbbde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.