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The Importance of Family Environment as a Determiner of Self-Employment

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  • Nathalie Colombier

    (CREM-CNRS, Université Rennes-I)

  • David Masclet

    (CREM-CNRS, Université Rennes-I)

Abstract

Economic literature has given great prominence to the micro-economic reasons behind an individual's decision to become "self-employed". Several empirical studies highlight the determining role of ones financial situation, level of education and family environment. Laferrère (1998) notes that the probability of being self-employed is positively correlated with one or both of one's parents being self-employed workers. Several papers explain this intergenerational correlation of self-employment by underlining the opportunity which self-employed parents have to transfer informal human capital to their children (Dunn and Holtz-Eakin, 2000). This article focuses on identifying the role played by family environment. The micro-economic reasons behind the decision to become self-employed differ depending on whether the individuals have received intergenerational transfers from self-employed parents. For example, the level of formal education is more of a determiner for the first generation of self-employed workers (those parents are not self-employed) than for second-generation self-employed workers (those whose parents are self-employed).

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Bibliographic Info

Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

Volume (Year): 405-406 (2008)
Issue (Month): (February)
Pages: 99-118

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Handle: RePEc:crs:ecosta:es405-406e

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Related research

Keywords: Self-Employment; Human Capital; Integenerational Transfers;

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References

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