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Who skims the cream of the Italian graduate crop? Wage employment versus self-employment

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  • Carolina Castagnetti

    ()

  • Luisa Rosti

Abstract

This paper tests whether the academic achievement is a significant determinant of the employment status in the Italian labor market: are the new entrepreneurs selected from the top or bottom end of the graduates ability distribution? Is the cream of the graduate crop pulled into self-employment by the higher expected earnings or are the individuals with lower degree score pushed into entrepreneurship by poor alternatives? Our data show a strong negative relation between academic achievement and self-employment status, i.e. we assess the skimming of the best graduates into wage and salary work.

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File URL: http://hdl.handle.net/10.1007/s11187-009-9199-1
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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 36 (2011)
Issue (Month): 2 (February)
Pages: 223-234

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Handle: RePEc:kap:sbusec:v:36:y:2011:i:2:p:223-234

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Web page: http://www.springerlink.com/link.asp?id=100338

Related research

Keywords: Self-employment; Education; Wage return; Italy; J24; J31; L26;

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References

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  14. Brown, Sarah & Sessions, John G, 1998. "Education, Employment Status and Earnings: A Comparative Test of the Strong Screening Hypothesis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(5), pages 586-91, November.
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  24. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
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