Resource title

Reducing Start-Up Costs for New Firms: The Double Dividend on the Labour Market

Resource image

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Resource description

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.

Resource author

Uwe Dulleck, Paul Frijters, Rudolf Winter-Ebmer

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20158

Resource license

Adapt according to the presented license agreement and reference the original author.