The Growth Potential of Startups over the Business Cycle

  title={The Growth Potential of Startups over the Business Cycle},
  author={Vincent Sterk},
  • Vincent Sterk
  • Published 2014
This paper shows that employment of U.S. firm cohorts is strongly influenced by aggregate conditions at the time of their entry. Employment variations across cohorts are found to be persistent and largely driven by differences in average firm size, rather than the number of firms. To disentangle startup composition from postentry choices, we estimate a general equilibrium firm dynamics model. We find that aggregate conditions at birth drive the vast majority of employment variation across… CONTINUE READING


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