Demographic Origins of the Start-up Deficit

We propose a simple explanation for the long-run decline in the US start-up rate. It originates from a slowdown in labor supply growth since the late 1970s, largely predetermined by demographics. This channel can explain roughly half of the decline and why incumbent firm survival and average growth over the life cycle have changed little. […] The post Demographic Origins of the Start-up Deficit appeared first on Marginal REVOLUTION.