TY  - JOUR
AU  - Glaeser,Edward L.
AU  - Kerr,William R.
TI  - Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14407
PY  - 2008
Y2  - October 2008
UR  - http://www.nber.org/papers/w14407
L1  - http://www.nber.org/papers/w14407.pdf
N1  - Author contact info:
Edward L. Glaeser
Department of Economics
315A Littauer Center
Harvard University
Cambridge, MA 02138
Tel: 617/495-0575
Fax: 617/495-7730
E-Mail: eglaeser@harvard.edu

William R. Kerr
Harvard Business School
Rock Center 212
Soldiers Field
Boston, MA 02163
Tel: 617/496-7021
E-Mail: wkerr@hbs.edu
AB  - Why are some places more entrepreneurial than others? We use Census Bureau data to study local determinants of manufacturing startups across cities and industries. Demographics have limited      explanatory power. Overall levels of local customers and suppliers are only modestly important, but new entrants seem particularly drawn to areas with many smaller suppliers, as suggested by Chinitz (1961). Abundant workers in relevant occupations also strongly predict entry. These forces plus city and industry fixed effects explain between sixty and eighty percent of manufacturing entry. We use spatial distributions of natural cost advantages to address partially endogeneity concerns
ER  -