Rudolf Winter-Ebmer, Paul Frijters, Uwe Dulleck,
"Reducing Start-up costs for New Firms: The Double Dividend on the Labor Market"
, in The Scandinavian Journal of Economics, Vol. 108, Nummer 2, 2006, ISSN: 1467-9442
Original Titel:
Reducing Start-up costs for New Firms: The Double Dividend on the Labor Market
Sprache des Titels:
Englisch
Original Kurzfassung:
Starting a firm with expansive potential is an option for educated and high-skilled workers. This option serves as an insurance against unemployment caused by labor market frictions and hence increases the incentives for education. We show within a matching model that reducing the start-up costs for new firms results in higher take-up rates of education. It also leads, through a thick-market externality, to higher rates of job creation for high-skilled labor as well as average match productivity. We provide empirical evidence to support our argument.