|
on Entrepreneurship |
| By: | Pugsley, Benjamin (Federal Reserve Bank of New York); Sahin, Aysegul (Federal Reserve Bank of New York) |
| Abstract: | 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 over the same period. Both observations hold across industries and geographies. We show that, despite these trends, firms’ life-cycle dynamics and business-cycle properties have remained virtually unchanged. Consequently, the reallocation of employment toward older firms results entirely from the cumulative effect of the thirty-year decline in firm entry. This “start-up deficit” has both an immediate and a delayed (by shifting the age distribution) effect on aggregate employment dynamics. Recognizing this evolving heterogeneity is crucial for understanding shifts in aggregate behavior of employment over the business cycle. With mature firms less responsive to business cycle shocks, the cyclical component of aggregate employment growth diminishes with the increasing share of mature firms. At the same time, the trend decline in firm entry masks the diminishing cyclicality during contractions and reinforces it during expansions, which generates the appearance of jobless recoveries where aggregate employment recovers slowly relative to output. |
| Keywords: | firm dynamics; employment dynamics; business cycles; entrepreneurship |
| JEL: | E32 J00 L25 L26 |
| Date: | 2014–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsr:707&r=ent |
| By: | Asoni, Andrea (Charles River Associates); Sanandaji, Tino (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We estimate the effect of college education on business survival using the NLSY79. The endogeneity of both education and business ownership is accounted for by a competing risks duration model augmented with a college selection equation. Contrary to the previous literature, we fi…nd no effect of college education on business failure. College however signi…cantly increases “employment survival.” Unlike college, cognitive skills have a positive impact on employment survival for both the self-employed and employees. The results suggest that college affects the self-employed and salaried employees in different ways, for example generating skills more useful in employment than self-employment. |
| Keywords: | Selection; Entrepreneurship; College Education; Intelligence; Self-con…dence |
| JEL: | C41 J24 L26 |
| Date: | 2014–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1050&r=ent |
| By: | Shakhnov, Kirill |
| Abstract: | The rapid growth of the US financial sector has driven policy debate on whether it is socially desirable. I propose a heterogeneous agent model with asymmetric information and matching frictions that produces a tradeoff between finance and entrepreneurship. By becoming bankers, talented individuals efficiently match investors with entrepreneurs, but do not internalize the negative effect on the pool of talented entrepreneurs. Thus, the financial sector is inefficiently large in equilibrium, and this inefficiency increases with wealth inequality. The model explains the simultaneous growth of wealth inequality and finance in the US, and why more unequal countries have larger financial sectors. |
| Keywords: | Talent; Financial sector, Matching, Productivity |
| JEL: | E44 G14 L26 O15 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:eui:euiwps:eco2014/13&r=ent |
| By: | Grillitsch , Markus (CIRCLE, Lund University); Nilsson , Magnus (Department of Business Administration and CIRCLE, Lund University) |
| Abstract: | It is widely accepted that firms in peripheral regions benefit to a lesser extent from local knowledge spillovers than firms located in agglomerations or industrial clusters. This paper investigates the extent to which innovative firms in peripheral regions compensate for the lack of access to local knowledge spillovers by collaborating at other geographical scales. So far the literature predominantly suggests that collaborations complement rather than compensate for local knowledge spillovers. Using data on the collaboration patterns of innovative firms in Sweden, this paper provides evidence that firms with low access to local knowledge spillovers tend to collaborate more. This effect, however, depends on firm size and in-house capabilities. Our findings suggest that firms with strong in-house capabilities do indeed compensate for a lack of local knowledge spillovers with collaborations while firms with weaker in-house capabilities depend more on the regional knowledge infrastructure. |
| Keywords: | Local knowledge spillovers; periphery; collaboration; innovation; geography; Sweden |
| JEL: | O18 O30 O31 P48 R10 R11 |
| Date: | 2014–12–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_033&r=ent |
| By: | Huu Chi Nguyen (University of Paris North, UMR DIAL); Christophe Nordman (IRD, UMR 225 DIAL, PSL, Université Paris Dauphine, LEDa) |
| Abstract: | (english) Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. One first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on the business technical efficiency. The assumption is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realize a lower output than what could be possible with the same amount of resources. We find evidence of a productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We stress the importance of professional networks for successful entrepreneurship. _________________________________ (français) En utilisant un panel de microentreprises familiales au Vietnam, cet article met en relation le réseau social des entrepreneurs et de leur ménage avec la performance de la microentreprise familiale. Nous abordons deux questions connexes. La première examine la possibilité d'effets différenciés de l'emploi des membres de la famille par rapport à des travailleurs recrutés sur le marché du travail sur la performance de la microentreprise. Une deuxième question aborde les effets respectifs des différentes dimensions des réseaux sociaux sur l'efficience technique de la microentreprise. L'hypothèse testée est que, au-delà du canal de la productivité du travail, les entrepreneurs qui sont confrontés à un environnement social défavorable pourraient produire moins efficacement et réaliser une valeur ajoutée plus faible que ce qui pourrait être possible avec la même quantité de ressources. Nous montrons qu'il existe en effet un différentiel de productivité entre le travail familial et le travail recruté sur le marché, et nos résultats attestent de la présence d'effets défavorables du réseau social pour certains ménages gérant une microentreprise. Nous soulignons aussi l'importance des réseaux professionnels pour la réussite de l'entreprenariat familial. |
| Keywords: | Family labour, Kinship and ethnic ties, Sharing norms, Social network capital, Informality, Household business, Panel, Vietnam. |
| JEL: | D13 D61 O12 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:dia:wpaper:dt201422&r=ent |
| By: | Marco Marchese |
| Abstract: | More than one-third of the European Union’s adult population would rather be self-employed than an employee if given the chance to choose, according to the 2012 Flash Eurobarometer survey. At the same time, there is a large entrepreneurial potential in social groups that are either disadvantaged in the labour market (e.g. youth, migrants, and the low-skilled) or underrepresented in the entrepreneurial population (e.g. women and seniors). Inclusive entrepreneurship policies aim to give the opportunity for people from these groups to start-up in business and self-employment both for economic reasons and to support the goal of social inclusion. |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaac:5-en&r=ent |
| By: | David Halabisky |
| Abstract: | Disability impacts a large number of people – approximately 16 % of the working age population in the EU is afflicted with a long-standing health problem or disability (European Commission, 2007). And this number will grow as the population ages in industrialised countries due to the associated increased susceptibility to mental and physical disorders (Lutz et al., 2011; Pascarelli et al., 2001). Disabilities are extremely diverse and are not a fixed characteristic of individuals. Many disabilities are invisible to the eye yet popular stereotypes of disabled people as permanent wheelchair users or as blind from birth persist. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaac:6-en&r=ent |
| By: | Abidoye, Babatunde; Orazem, Peter; Vodopivec, Milan |
| Abstract: | Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more workers justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Although formally subject to TEWA, firms in Export Promotion Zones (EPZs) do not face the same constraints as nonEPZ firms due to size incentives and lax labor law enforcement in that sector. In EPZ, 77% of firms have more than 15 employeses while 76% of nonEPZ firms are smaller than 15 employees. Panel data on all formal sector firms between 1995 and 2003 shows that 80% of the size gap is from sorting of large firms into the EPZ. In addition, EPZ firms grow faster and are less likely to die than comparably sized nonEPZ firms. Despite its intent, TEWA lowered employment. |
| Keywords: | Firing Cost; Employment Protection; Firm Entry; Firm Growth; Threshold; Export Promotion Zone; Sri Lanka. |
| JEL: | J30 |
| Date: | 2014–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:38332&r=ent |
| By: | Asian Development Bank (ADB); (Office of Regional Economic Integration, ADB); ; |
| Abstract: | The Asia SME Finance Monitor 2013 is the knowledge sharing product on SMEs in Asia and the Pacific, specially focusing on SME access to finance. The Monitor reviews various country aspects of SME finance covering the banking sector, nonbank sector, and capital markets. It is expected to support evidence-based policy making and regulations on SME finance in the region. |
| Keywords: | SME finance, Small and medium-sized enterprises, supply chain finance, venture capital, financial inclusion, SME sector development, SME access to finance, SME lending, inclusive growth |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt146404-2&r=ent |