A Key Ingredient for Creating Start-Ups: Young People

June 16, 2014

Research Finding : 
A Key Ingredient for Creating Start-Ups: Young People

Observation : 
The presence of young workers appears to be necessary for the creation and growth of new firms, particularly in industries where young people have key technical skills . 

 For example, in the electronics industry, a 5% increase in the share of youth in the population leads to a 1-to-2-percentage-point increase in the rate of new-firm creation, according to the researchers’ analysis of U.S. Census data.

Research Conducted by ; Paige Ouimet of the University of North Carolina and Rebecca Zarutskie of the Federal Reserve Board.