Work

Business Formation: A Tale of Two Recessions

Year: 2021

Type: article

Abstract: The trajectory of new business applications and transitions to employer businesses differs markedly during the Great Recession and the COVID-19 recession. Both applications and transitions to employer start-ups decreased slowly but persistently in the post-Lehman crisis period of the Great Recession. In contrast, during the COVID-19 recession, new applications initially declined but have since sharply rebounded, resulting in a surge in applications during 2020. Projected transitions to employer businesses also rise, but this is dampened by a change in the composition of applications in 2020 toward applications that are more likely to be nonemployers.

Source: AEA Papers and Proceedings

DOI: 10.1257/pandp.20211055

Authors: Emin Dinlersoz, Timothy Dunne, John Haltiwanger, Veronika Penciakova

Institutions: United States Census Bureau, University of Notre Dame, University of Maryland, College Park, Federal Reserve Bank of Atlanta

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W3126487669