Abstract
The chapter presents results of an empirical investigation into regional differences in the formation of new firms in West Germany in the period 1986–89. Some of the findings are quite consistent with the results of similar analyses undertaken for other countries. There is a large positive correlation between the rate at which new firms are founded and the share of the regional labor force that is employed in small companies. Many founders seem to have had experience working in small firms and seem to have developed an above-average level of skill. A high unemployment rate does not promote a rise in the formation of new firms in West Germany, but an increase of unemployment is associated with a relatively high birth rate, especially in the service sector. All in all, a regional environment conducive to start-ups is characterized by low unemployment, high earnings and a well-trained labor force.
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Fritsch, M. (1995). Determinants of New Firm Formation in West German Regions 1986–1989: An Empirical Analysis. In: van Witteloostuijn, A. (eds) Market Evolution. Studies in Industrial Organization, vol 20. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8428-9_17
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DOI: https://doi.org/10.1007/978-94-015-8428-9_17
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