Abstract
Empirical studies based on individual data have found an inverse U-shaped relationship between age and the decision to start a business. Other studies have shown that becoming an entrepreneur is a regional event, with potential entrepreneurs benefiting from their local networks. This article links both strands of literature by introducing age-specific peer effects. Using changes in the age distribution of the population of western German regions over time, we found-in accordance with microlevel analyses-an inverse U-shaped relationship between the regional age structure and start-up activity in a region. Moreover, our findings suggest that the age-specific likelihood of becoming an entrepreneur changes with the size of the age cohort, pointing to the existence of age-specific peer effects.
| Item Type: | Journal article |
|---|---|
| Faculties: | Economics Economics > Chairs > CESifo-Professorship for Empirical Innovation Economics |
| Subjects: | 300 Social sciences > 330 Economics |
| Language: | English |
| Item ID: | 20201 |
| Date Deposited: | 15. Apr 2014, 08:57 |
| Last Modified: | 04. Nov 2020, 13:01 |
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