Demographic origins of the startup deficit

Saved in:

Authors and Corporations:

Karahan, Fatih (Author), Pugsley, Benjamin (Author), Şahin, Ayşegül (Author)

Other Authors:

Pugsley, Benjamin [Author] • Şahin, Ayşegül [Author]

Type of Resource:

E-Book

Language:

English

published:

New York, NY Federal Reserve Bank of New York [2019]

Series:

Subjects:

firm dynamics

demographics

business dynamism

macroeconomics

Graue Literatur

Source:

Verbunddaten SWB
Lizenzfreie Online-Ressourcen

Description
Summary:	We propose a simple explanation for the long-run decline in the startup rate. It was caused by a slowdown in labor supply growth since the late 1970s, largely pre-determined by demographics. This channel explains roughly two-thirds of the decline and why incumbent firm survival and average growth over the lifecycle have been little changed. We show these results in a standard model of firm dynamics and test the mechanism using shocks to labor supply growth across states. Finally, we show a longer startup rate series, imputed using historical establishment tabulations, that rises over the 1960-70s period of accelerating labor force growth.
Physical Description:	1 Online-Ressource (circa 46 Seiten); Illustrationen; Appendix: 1 Online-Ressource (circa 30 Seiten)