Financial development, entrepreneurship and job satisfaction
AbstractThis paper shows that utility differences between the self-employed and the employees increase with financial development. This effect is not explained by increased profits but by an increased value of non- monetary benefits, in particular job independence. We interpret these findings by building a simple occupational choice model in which financial constraints may impede firms' creation and depress labor demand, thereby pushing some individuals into self-employment for lack of salaried jobs. In this setting, financial development favors a better matching between individual motivation and occupation, thereby increasing entrepreneurial utility despite increasing competition and so reducing profits.
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Date of creation: Nov 2008
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financial development ; entrepreneurship ; job satisfaction;
Other versions of this item:
- Milo Bianchi, 2012. "Financial Development, Entrepreneurship, and Job Satisfaction," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 273-286, February.
- Milo Bianchi, 2012. "Financial Development, Entrepreneurship, and Job Satisfaction," Post-Print halshs-00670031, HAL.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
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