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

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  • Castagnetti, Carolina
  • Rosti, Luisa

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://mpra.ub.uni-muenchen.de/26195/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13504.

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Date of creation: 05 Dec 2008
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Handle: RePEc:pra:mprapa:13504

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Keywords: Self-employment; Italy; Selection;

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  2. Irwin Bernhardt, 1994. "Comparative Advantage in Self-Employment and Paid Work," Canadian Journal of Economics, Canadian Economics Association, vol. 27(2), pages 273-89, May.
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  16. 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.
  17. Brown, Sarah & Sessions, John G., 1999. "Education and employment status: a test of the strong screening hypothesis in Italy," Economics of Education Review, Elsevier, vol. 18(4), pages 397-404, October.
  18. Simon Parker & Tim Barmby & Yacine Belghitar, 2004. "Wage Uncertainty And The Labour Supply Of Self-Employed Workers," Royal Economic Society Annual Conference 2004 67, Royal Economic Society.
  19. Dolton, Peter J & Makepeace, Gerald H, 1987. "Marital Status, Child Rearing and Earnings Differentials in the Graduate Labour Market," Economic Journal, Royal Economic Society, vol. 97(388), pages 897-922, December.
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  24. repec:ebl:ecbull:v:9:y:2005:i:4:p:1-7 is not listed on IDEAS
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