What makes start-ups out of unemployment different?

Abstract

"'What makes start-ups out of unemployment different?' To answer this question we formulate a theoretical sketch for start-up activity out of unemployment. Furthermore, we estimate spatial autoregressive models for the regional start-up rates out of unemployment as well as out of employment with German data from 1999 to 2004 at the NUTS3-level. Characteristics describing the populations of potential entrepreneurs as well as agglomeration externalities have a similar impact on both start-up rates. They are, however, affected in different ways by the regional wage level and the probability of entrepreneurial success. Moreover, the local impact of these determinants is amplified by spatial spillover and spatial feedback effects in particular for the start-up rate out of unemployment." (Author's abstract, IAB-Doku) ((en))

Cite article

Schanne, N. & Weyh, A. (2009): What makes start-ups out of unemployment different? (IAB-Discussion Paper 04/2009), Nürnberg, 36 p.