Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on...

Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on...

This paper investigates the impact of new firms' quality on the magnitude of their employment effects. Our results clearly show that the quality of start-ups, measured by their affiliation with sectors and innovative industries, strongly influences the direct and the overall employment...

The knowledge spillover theory of entrepreneurship predicts that entrepreneurial activity is greater in regions with more knowledge conditional on the commercialization efficiency of incumbents, which limits entrepreneurial discovery. We extend the theory to contend that localized competition...

Purpose – Schumpeter claimed the entrepreneur to be instrumental for creative destruction and industrial dynamics. Entrepreneurial entry serves to transform and revitalize industries, thereby enhancing their competitiveness. The purpose of this paper is to investigate if entry of new firms...

Using state-level data on productive and unproductive entrepreneurship, shadow economy size, and public official corruption, this paper examines whether formal sector productive (unproductive) entrepreneurial activity is associated with lower (higher) levels of informal economic activity....

We document two striking facts about U.S. firm dynamics and interpret their significance for aggregate employment dynamics. The first observation is the steady decline in the firm entry rate over the last thirty years, and the second is the gradual shift of employment from younger to older firms...

Entrepreneurs' exposure to economic uncertainty from regulation, monetary policy, and taxation is exacerbated by the inflexibility of capital asset commitments. Entrepreneurs adapt to uncertainty by reducing asset specificity. While the mainstream approach tends to focus on reduced aggregate...

This paper studies the impacts of social insurance on the decision of an unemployed individual to start a business. I find that higher unemployment insurance (UI) benefits both lower the probability that an unemployed person will become self-employed and extend the duration before they make such...

This paper draft presents a novel methodological approach to the analysis of the potentially emerging relationships between the intensity of entrepreneurship – approximated by the self-employment, and business cycle. Its main objective is to determine whether the variables defined as proxies...