Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31753
Authors: 
Fritsch, Michael
Noseleit, Florian
Year of Publication: 
2008
Series/Report no.: 
Jena economic research papers 2008,068
Abstract: 
We investigate the effects that new business formation has on employment in incumbent firms and compare it to the development in the start-ups. The analysis is performed for West German regions over the 1984-2002 period. It shows that the employment effects of new businesses on the incumbents are significantly positive. Moreover, we find indication that these effects on incumbents are considerably larger than the employment that is directly generated in the start-ups. We draw conclusions for policy and for further research.
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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