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Horatio Alger Meets the Mobility Tables

Author

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  • Douglas Holtz-Eakin
  • Harvey S. Rosen
  • Robert Weathers

Abstract

The question of how entrepreneurship relates to income mobility is cogent given the current public debate about the sources of income inequality and mobility in United States society. We examine how experience with entrepreneurship has affected an individual's place in the earnings distribution. Our basic tack is to follow individuals' positions in the income distribution over time, and to see how their mobility (or lack thereof) was affected by involvement with entrepreneurship. Our main finding is that for low-income individuals there is some merit to the notion that the self-employed moved ahead in the earnings distribution relative to those who remained wage earners. On the other hand, for those at the upper end of the earnings distribution, those who became self-employed often advanced less in the earnings distribution than their salaried counterparts.

Suggested Citation

  • Douglas Holtz-Eakin & Harvey S. Rosen & Robert Weathers, 2000. "Horatio Alger Meets the Mobility Tables," NBER Working Papers 7619, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7619
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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