Windfalls, Wealth, and the Transition to Self-Employment
AbstractWe examine the transition to, and survival in, self-employment among a sample of British workers. We find evidence of capital constrains, with wealthier individuals being more likely to transit ceteris paribus. Windfall gains raise the probability of transition at a decreasing rate – gains or more than £20000–£22000 reduce the probability of transition – and larger gains reduce the probability of transition amongst relatively wealthier respondents. We also find peculiarities in the effects of particular types of windfall; redundancy payments and inheritances raise the probability of transition, whilst lottery wins reduce the probability of (especially male) transitions. In contrast, inheritances (lottery wins) hinder (augment) self-employment survival. Copyright Springer 2005
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Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 25 (2005)
Issue (Month): 5 (December)
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Web page: http://www.springerlink.com/link.asp?id=100338
Self-employment; transitions; windfalls; J0; J5; J23;
Find related papers by JEL classification:
- J0 - Labor and Demographic Economics - - General
- J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
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