IDEAS home Printed from https://ideas.repec.org/p/isu/genres/13086.html
   My bibliography  Save this paper

Stopping Start-Ups: How The Business Cycle Affects Entrepreneurship

Author

Listed:
  • Yu, Li
  • Orazem, Peter
  • Jolly, Robert W.

Abstract

This study analyzes whether economic conditions at the time of labor market entry affect entrepreneurship, using difference in business start-ups between cohorts of college students graduating in boom or bust economic conditions. Those graduating during an economic bust tend to delay their business start-ups relative to boom period graduates by about two years. Our results are consistent with additional findings that higher unemployment rates at time of graduation significantly delay the first business start-up across all college graduation cohorts over the 1982-2004 period. The adverse effect of a bust is temporary, delaying but not preventing self-employment over the life-cycle.

Suggested Citation

  • Yu, Li & Orazem, Peter & Jolly, Robert W., 2009. "Stopping Start-Ups: How The Business Cycle Affects Entrepreneurship," Staff General Research Papers Archive 13086, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:13086
    as

    Download full text from publisher

    File URL: http://www2.econ.iastate.edu/papers/p1456-2009-07-03.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. Bukstein Daniel & Gandelman Nestor, 2018. "Cohort, Age and Business Cycle Effects in Entrepreneurship in Latin America," Entrepreneurship Research Journal, De Gruyter, vol. 8(3), pages 1-13, July.
    2. Per Davidsson & Scott R. Gordon, 2016. "Much Ado about Nothing? The Surprising Persistence of Nascent Entrepreneurs through Macroeconomic Crisis," Entrepreneurship Theory and Practice, , vol. 40(4), pages 915-941, July.
    3. Evila Piva & Massimiliano Guerini, 2023. "The impact of the COVID-19 pandemic and pandemic-related policies on new firm creation: an analysis of the Italian case," Small Business Economics, Springer, vol. 60(3), pages 1009-1031, March.

    More about this item

    Keywords

    Entrepreneurship; boom; bust; occupatiopnal choice; survivor analysis; business cycle; cohort;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

    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:isu:genres:13086. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.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.