Business Formation: A Tale of Two Recessions
AbstractThe 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.
CitationDinlersoz, Emin, Timothy Dunne, John Haltiwanger, and Veronika Penciakova. 2021. "Business Formation: A Tale of Two Recessions." AEA Papers and Proceedings, 111: 253-57. DOI: 10.1257/pandp.20211055
- M13 New Firms; Startups
- G01 Financial Crises
- I12 Health Behavior