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

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Author Info
Castagnetti, Carolina
Rosti, Luisa

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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/13504/
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Publisher 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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Related research
Keywords: Self-employment; Italy; Selection;

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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  1. Simon C. Parker & Yacine Belghitar & Tim Barmby, 2005. "Wage Uncertainty and the Labour Supply of Self-Employed Workers," Economic Journal, Royal Economic Society, vol. 115(502), pages C190-C207, 03. [Downloadable!] (restricted)
    Other versions:
  2. Garcia-Mainar, Inmaculada & Montuenga-Gomez, Victor M., 2005. "Education returns of wage earners and self-employed workers: Portugal vs. Spain," Economics of Education Review, Elsevier, vol. 24(2), pages 161-170, April. [Downloadable!] (restricted)
  3. Robson, Martin T, 2003. " Does Stricter Employment Protection Legislation Promote Self-Employment?," Small Business Economics, Springer, vol. 21(3), pages 309-19, November. [Downloadable!] (restricted)
  4. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Brown, Sarah & Sessions, John G., 2006. "Evidence on the relationship between firm-based screening and the returns to education," Economics of Education Review, Elsevier, vol. 25(5), pages 498-509, October. [Downloadable!] (restricted)
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  7. Olmo Silva, 2006. "The Jack-of-All-Trades Entrepreneur: Innate Talent or Acquired Skill?," IZA Discussion Papers 2264, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Cowling, Marc & Taylor, Mark, 2001. " Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-75, May. [Downloadable!] (restricted)
  11. Edwin T. Fujii & Clifford H. Lee, 1991. "Empirical Aspects of Self-Employment," Working Papers 199103, University of Hawaii at Manoa, Department of Economics.
  12. 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. [Downloadable!] (restricted)
  13. Fujii, Edwin T. & Hawley, Clifford B., 1991. "Empirical aspects of self-employment," Economics Letters, Elsevier, vol. 36(3), pages 323-329, July. [Downloadable!] (restricted)
  14. Dolton, Peter J & Makepeace, G H, 1990. "Self Employment among Graduates," Bulletin of Economic Research, Blackwell Publishing, vol. 42(1), pages 35-53, January.
  15. Schettkat, Ronald, 1997. "Employment Protection and Labour Mobility in Europe: An Empirical Analysis Using the EU's Labour Force Survey," International Review of Applied Economics, Taylor and Francis Journals, vol. 11(1), pages 105-18, January.
  16. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn. [Downloadable!] (restricted)
  17. Dolton, P. J. & Makepeace, G. H., 1987. "Interpreting sample selection effects," Economics Letters, Elsevier, vol. 24(4), pages 373-379. [Downloadable!] (restricted)
  18. Carolina Castagnetti & Francesco Chelli & Luisa Rosti, 2005. "Educational Performance as Signalling Device: Evidence from Italy," Economics Bulletin, Economics Bulletin, vol. 9(4), pages 1-7. [Downloadable!]
  19. Marc Cowling & Mark Taylor & Peter Mitchell, 2004. "Job Creators," Manchester School, University of Manchester, vol. 72(5), pages 601-617, 09. [Downloadable!] (restricted)
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