The Entrepreneurship Beveridge Curve

Thomas Gries, Stefan Jungblut, Wim Naudé

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The rate of creation and failure of start-up firms can be modeled as a search and matching process as in labor market matching models. Setting out an endogenous growth model with entrepreneurship, we derive an entrepreneurship Beveridge curve. We use this to illustrate that whether or not a start-up is successful depends on the efficiency with which entrepreneurial abilities are matched with business opportunities. The entrepreneurship Beveridge curve is a potentially useful analytical contribution to the formalization of the economics of entrepreneurship. We identify a number of extensions and applications.

Original languageEnglish
Pages (from-to)151-165
Number of pages15
JournalInternational Journal of Economic Theory
Volume12
Issue number2
DOIs
Publication statusPublished - Jun 2016

Keywords

  • entrepreneurship
  • start-up
  • labor market matching
  • OPPORTUNITIES
  • DISPERSION
  • WAGE

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