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Self-Employment and Wealth Inequality

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Author Info
Lindh, Thomas
Ohlsson, Henry

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Abstract

Is the decision to become and stay self-employed constrained by access to credit? If this is the case, a more unequal wealth distribution will--for empirically observed distributions--imply more self-employed, since the number of people able to provide collateral will be higher. Swedish data between 1920 and 1992 suggest that wealth inequality and the share of self-employed among those working are positively related. The data, therefore, are consistent with the hypothesis that liquidity constraints are binding on the decision to become and stay self-employed. Copyright 1998 by The International Association for Research in Income and Wealth.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 44 (1998)
Issue (Month): 1 (March)
Pages: 25-42
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Handle: RePEc:bla:revinw:v:44:y:1998:i:1:p:25-42

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