Employment is often the primary motivation behind entrepreneurial and industrial policy. But new firms are known to differ greatly in performance. Not every new firm survives and even fewer achieve high growth rates. It is well established that spin-offs – firms founded by employees from...

This paper analyzes the role of labor market institutions in explaining developments of shadow economies in European countries. We use several alternative measures of the shadow sector, and we examine effects of labor institutions on shadow sector in two specific regions: new and old European...