The direct employment effects of new businesses in Germany revisited

Abstract

"Based on an improved and extended database, the Establishment History Panel, we extend the analysis of Fritsch & Weyh (2006) by investigating the development of employment in German start-up cohorts for the period 1976 to 2004. We confirm the typical pattern of an initial increasing and then soon decreasing number of employees in start-up cohorts. Furthermore, we provide some of the first evidence for the 'liability of aging' phenomena in Germany. Older firms face a relatively high risk of failure. Although only the largest 25% of the surviving entries grow in terms of employment, after 25 years the number of employees in these relatively large businesses strongly declines." (Author's abstract, IAB-Doku) ((en))

Cite article

Schindele, Y. & Weyh, A. (2008): The direct employment effects of new businesses in Germany revisited. An empirical investigation for 1976-2004. (Jena economic research papers 2008-076), Jena, 18 p.