Entrepreneurship and the welfare state: a reply
AbstractIt is widely recognized that the supply of entrepreneurial talent is likely to be important for economic growth, innovation, and job creation. In Henrekson (2005, Industrial and Corporate Change, 14(3), 437--467), it was shown that the supply of productive entrepreneurship is likely to be reduced by the kind of tax and welfare arrangements that prevail in a mature welfare state. Welfare state institutions developed mostly during a period when it was common among politicians and economists to assume that individual entrepreneurship and new firms were of minor importance. However, in an environment where entry, exit, and turnover of firms are important for growth, and where scale economies are less important, this kind of model may be more problematic. There are a number of measures that can be implemented to strengthen entrepreneurial incentives within extensive welfare states, but their implementation is unlikely because there are strong vested interests, including the incumbent business elite, defending the current model. A number of objections against this analysis have been raised by James K. Galbraith and Ronald Dore in the previous issue of Industrial and Corporate Change. In this reply, it is shown that these objections are either largely unfounded or just misunderstandings. Copyright 2006, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 15 (2006)
Issue (Month): 3 (June)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://icc.oupjournals.org/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December.
- Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
- Lindbeck, Assar, 1982. "Tax Effects versus Budget Effects on Labor Supply," Economic Inquiry, Western Economic Association International, vol. 20(4), pages 473-89, October.
- Andreas Bergh, 2005. "On Inter- and Intra-Individual Redistribution of the Welfare State," Social Science Quarterly, Southwestern Social Science Association, vol. 86(s1), pages 984-995.
- Ronald Dore, 2006. "The entrepreneurial house has many mansions," Industrial and Corporate Change, Oxford University Press, vol. 15(1), pages 207-213, February.
- Freeman, Richard B, 1995. "The Large Welfare State as a System," American Economic Review, American Economic Association, vol. 85(2), pages 16-21, May.
- Henrekson, Magnus, 2002.
"Entrepreneurship: A Weak Link in the Welfare State,"
Working Paper Series in Economics and Finance
518, Stockholm School of Economics, revised 04 Mar 2005.
- Magnus Henrekson, 2005. "Entrepreneurship: a weak link in the welfare state?," Industrial and Corporate Change, Oxford University Press, vol. 14(3), pages 437-467, June.
- Acs, Zoltan J & Phillips, Ronnie J, 2002. " Entrepreneurship and Philanthropy in American Capitalism," Small Business Economics, Springer, vol. 19(3), pages 189-204, November.
- Parker,Simon C., 2004.
"The Economics of Self-Employment and Entrepreneurship,"
Cambridge University Press, number 9780521828130, October.
- Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, October.
- Sinn, Hans-Werner, 1996.
"Social Insurance, Incentives and Risk Taking,"
Munich Reprints in Economics
19834, University of Munich, Department of Economics.
- Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality In The United States, 1913-1998," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 1-39, February.
- Milo Bianchi & Magnus Henrekson, 2005.
"Is Neoclassical Economics still Entrepreneurless?,"
Wiley Blackwell, vol. 58(3), pages 353-377, 07.
- Blanchflower, David G & Oswald, Andrew J, 1998.
"What Makes an Entrepreneur?,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(1), pages 26-60, January.
- Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, 02.
- Assar Lindbeck & Sten Nyberg & Jšrgen W. Weibull, 1999.
"Social Norms And Economic Incentives In The Welfare State,"
The Quarterly Journal of Economics,
MIT Press, vol. 114(1), pages 1-35, February.
- Lindbeck, Assar & Nyberg, Sten & Weibull, Jörgen W., 1997. "Social Norms and Economic Incentives in the Welfare State," Working Paper Series 476, Research Institute of Industrial Economics.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002.
"Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development,"
NBER Working Papers
9305, National Bureau of Economic Research, Inc.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, 06.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- James K. Galbraith, 2006. "Some notes on entrepreneurship and welfare state," Industrial and Corporate Change, Oxford University Press, vol. 15(1), pages 203-207, February.
- Baumol, William J, 1990. "Entrepreneurship: Productive, Unproductive, and Destructive," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 893-921, October.
- Lindbeck, Assar, 1995. "Hazardous Welfare-State Dynamics," American Economic Review, American Economic Association, vol. 85(2), pages 9-15, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.