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What distinguishes entrepreneurs? Evidence on the motives for self-employment

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  • Tyrowicz, Joanna

Abstract

Previous studies distinguish between "survival" and "aspirations" based on ex ante declarations. In this paper, we propose an identification strategy based on objective criteria. Using evidence from a standard labour force survey, we find that self-employed who switched from wage employment and created additional jobs were systematically over-compensated relative to those who did not switch and to those who switched but have not created additional jobs.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 112 (2011)
Issue (Month): 3 (September)
Pages: 226-229

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Handle: RePEc:eee:ecolet:v:112:y:2011:i:3:p:226-229

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Self-employment Aspirations Survival Wages;

References

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  1. Estrin, Saul & Mickiewicz, Tomasz, 2009. "Do Institutions Have a Greater Effect on Female Entrepreneurs?," IZA Discussion Papers 4577, Institute for the Study of Labor (IZA).
  2. Belzil, Christian, 2007. "Testing the Specification of the Mincer Wage Equation," IZA Discussion Papers 2650, Institute for the Study of Labor (IZA).
  3. Marco Caliendo & Alexander S. Kritikos, 2007. "Is Entrepreneurial Success Predictable?: An Ex-ante Analysis of the Character-Based Approach," Discussion Papers of DIW Berlin 684, DIW Berlin, German Institute for Economic Research.
  4. Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
  5. Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
  6. Estrin, Saul & Mickiewicz, Tomasz, 2010. "Entrepreneurship in Transition Economies: The Role of Institutions and Generational Change," IZA Discussion Papers 4805, Institute for the Study of Labor (IZA).
  7. Berkowitz, Daniel & Jackson, John E., 2006. "Entrepreneurship and the evolution of income distributions in Poland and Russia," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 338-356, June.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Koellinger, Philipp & Minniti, Maria, 2009. "Unemployment benefits crowd out nascent entrepreneurial activity," Economics Letters, Elsevier, vol. 103(2), pages 96-98, May.
  10. Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007. ""I think I can, I think I can": Overconfidence and entrepreneurial behavior," Journal of Economic Psychology, Elsevier, vol. 28(4), pages 502-527, August.
  11. Naude, Wim, 2008. "Entrepreneurship in Economic Development," Working Paper Series RP2008/20, World Institute for Development Economic Research (UNU-WIDER).
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