Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331724 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18160
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The COVID-19 pandemic delivered an unprecedented shock to business entry, with sharply contrasting effects on different types of startups. Using newly constructed administrative data from the Comprehensive Startup Panel covering the universe of U.S. startups, we provide the first official numbers of the pandemic's impact on employer and nonemployer startup dynamics. Nonemployer startup formation declined substantially in 2020, while employer startups unexpectedly increased. Survival outcomes also diverged: nonemployer startup survival dropped markedly, whereas employer startup survival remained largely stable. These findings reveal a pronounced compositional shift and underscore the importance of designing policies tailored to nonemployer startups in economic crises.
Subjects: 
entrepreneurship
startups
employers
nonemployers
COVID-19
pandemic
survival
resilience
JEL: 
L26
E32
M13
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.