Business Cycles, Unemployment and Entrepreneurial Entry - First Evidence from Germany
We 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".
|Date of creation:||20 Mar 2013|
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- 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.
- 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.
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