Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32572
Authors: 
Fritsch, Michael
Noseleit, Florian
Year of Publication: 
2009
Series/Report no.: 
Jena economic research papers 2009,081
Abstract: 
We investigate the effects that regional start-up activity has on employment in new and in incumbent businesses. The analysis is performed for West German regions over the 1987-2002 period. It shows that the effects of new businesses on employment in the incumbents are significantly positive and that this indirect effect on incumbent employment leads to more jobs than what is created by the newcomers. We find that the effect of new business formation on incumbents is exclusively driven by start-ups that survive a certain period of time. 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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