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Full-Text Articles in Social and Behavioral Sciences
Entrepreneurship And Economic Growth: The Proof Is In The Productivity, Douglas Holtz-Eakin, Chihwa Kao
Entrepreneurship And Economic Growth: The Proof Is In The Productivity, Douglas Holtz-Eakin, Chihwa Kao
Center for Policy Research
Popular and policy discussions have focused extensively on "entrepreneurship." While entrepreneurship is often viewed from the perspective of the individual's benefits--an increase in standard of living, flexibility in hours, and so forth--much of the policy interest derives from the presumption that entrepreneurs provide economy-wide benefits in the form of new products, lower prices, innovations, and increased productivity. How large are these effects? Using a rich panel of state-level data, we quantify the relationship between productivity growth--by state and by industry--and entrepreneurship. Specifically, we use state-of-the-art econometric techniques for panel data to determine whether variations in the birth rate and death …
Cash Constraints And Business Start-Ups: Deutschmarks Versus Dollars, Douglas Holtz-Eakin, Harvey Rosen
Cash Constraints And Business Start-Ups: Deutschmarks Versus Dollars, Douglas Holtz-Eakin, Harvey Rosen
Center for Policy Research
In this paper we analyze microdata to explore differences in the rates at which American and German workers leave their salaried jobs to become self-employed. We document that the rate of self-employment is lower in Germany than in the U.S., and the rate of transition from wage-earning to self-employment is lower as well. We find evidence that German workers face liquidity constraints that are more severe than those of their American counterparts. Further, the difference in transition rates cannot be attributed to observable differences between German and American workers.