Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31736 
Year of Publication: 
2009
Series/Report no.: 
Jena Economic Research Papers No. 2009,001
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
Recent empirical research has found that the effect of new business formation on employment emerges over a period of about ten years and has identified a 'wave' pattern of these effects. In this study, we decompose the overall contribution of new business formation on employment change into direct and indirect effects. The results indicate that indirect effects of new business formation are quantitatively much more important than the direct effects. Furthermore, we find that regional differences of the employment change generated by new business formation can to a large part be explained by respective differences of the indirect effects. Hence, the interaction of the start-ups with their regional environment plays a great role for explaining their impact on regional development.
Subjects: 
Entrepreneurship
new business formation
regional development
direct and indirect effects
JEL: 
L26
M13
O1
O18
R11
Document Type: 
Working Paper

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