Universität zu Köln

Beiler, Hendrik (2017). Do you dare? The effect of economic conditions on entrepreneurship among college graduates. Labour Econ., 47. S. 64 - 75. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1879-1034

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Abstract

I estimate the effect of economic conditions on the decision to enter entrepreneurship after graduation from college. I proxy for economic conditions at the field, of study level, constructed from industry growth rates which I map to fields of study using the average industry - college major distribution. This setup allows controlling for unobserved differences between graduation cohorts such as technological change or shifts in cohort composition. Based on German survey data, I find that a one percentage point increase in field-specific employment growth in the year of graduation raises entry into entrepreneurship by about 30% in the first year after graduation. The effect halves in the second year and is close to zero in the third and fourth years after graduation. Exit from entrepreneurship decreases slightly when economic conditions at graduation improve. Taken together, my results imply that lucky graduation cohorts are persistently more likely to engage in entrepreneurship than recessionary cohorts, at least during the first four years after graduation that I examine.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Beiler, Hendrik UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-222274
DOI:	10.1016/j.labeco.2017.05.003
Journal or Publication Title:	Labour Econ.
Volume:	47
Page Range:	S. 64 - 75
Date:	2017
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1879-1034
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language BUSINESS-CYCLE; SELF-EMPLOYMENT; FIRM; PLANTS; RISK Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/22227