Working Paper: NBER ID: w15536
Authors: Edward L. Glaeser; Stuart S. Rosenthal; William C. Strange
Abstract: Research on entrepreneurship often examines the local dimensions of new business formation. The local environment influences the choices of entrepreneurs; entrepreneurial success influences the local economy. Yet modern urban economics has paid relatively little attention to entrepreneurs. This essay introduces a special issue of Journal of Urban Economics dedicated to the geography of entrepreneurship. The paper frames the core questions facing researchers interested in assessing the local causes and consequences of entrepreneurship, perturbs a core urban model to incorporate entrepreneurship, and concludes by offering an agenda for future work on the spatial aspects of entrepreneurship.
Keywords: Entrepreneurship; Urban Economics; Local Economy; Economic Growth
JEL Codes: J23; L26; M13; O31; R30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increase in the number of entrepreneurs in a closed city (L26) | higher wages (J39) |
| increase in the number of entrepreneurs in a closed city (L26) | higher worker utility (J29) |
| increase in the number of entrepreneurs in a closed city (L26) | decrease in the number of workers per firm (J29) |
| increase in the number of entrepreneurs in a closed city (L26) | ambiguous effect on land values (R52) |
| increase in the number of entrepreneurs in an open city (O35) | raise city population (R23) |
| increase in the number of entrepreneurs in an open city (O35) | raise land values (R52) |
| increase in the number of entrepreneurs in an open city (O35) | ambiguous effect on wages (J31) |
| increased entrepreneurship (L26) | raises returns to entrepreneurship (L26) |
| increased entrepreneurship (L26) | rising costs associated with increased demand for labor and land (J39) |