Entrepreneurship and Market Size: The Case of Young College Graduates in Italy

摘要: We analyze empirically the effects of urban agglomeration on Italian college graduates’ work possibilities as entrepreneurs three years after graduation. find that each 100,000 inhabitant-increase in size individual’s province reduces chances being an entrepreneur by 0.2 percent. This result is robust to controlling for regional fixed and instrumenting urbanization with different sets instruments. However, a positive externality emerges taking into account amenities dis-amenities, and, above all, provinces’ competition cost labor. In this case, every inhabitant increase raises chance entrepreneurship 2.4 Finally, long they succeed entering largest markets, young are able reap-off benefits externalities: 100,000-inhabitant province’s population entrepreneurs’ net hourly income