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Small Business Economics

, Volume 36, Issue 3, pp 353–363 | Cite as

The direct employment effects of new businesses in Germany revisited: an empirical investigation for 1976–2004

  • Yvonne Schindele
  • Antje Weyh
Article

Abstract

Based on an improved and extended database, the Establishment History Panel, we extend the analysis of Fritsch and Weyh [Small Business Economics 27(2), 245–260 (2006)] by investigating the development of employment in German start-up cohorts for the period 1976 to 2004. We confirm the typical pattern found in start-up cohorts: an initial increasing number of employees that is soon followed by a decreasing number. We also provide some of the first evidence for the “liability of aging” phenomena in Germany. Older firms face a relatively high risk of exit. We find that most entries with relatively large initial employment grow substantially in the first two decades. However, these businesses suffer from a considerable employment decline after 25 years.

Keywords

Employment change Liability of aging New firms Start-up cohorts 

JEL Classifications

D21 L10 L26 L29 M13 

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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  1. 1.Friedrich Schiller University JenaJenaGermany
  2. 2.Institute for Employment Research (IAB), Federal Employment Agency, IAB Regional SaxonyChemnitzGermany

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