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Geneses of labour market turnover: Job search and entrepreneurial aspirations on-the-job

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Author Info

  • Ari Hyytinen

    (Research Institute of the Finnish Economy ETLA)

  • Pekka Ilmakunnas

    (Helsinki School of Economics)

Abstract

In this paper we study the labour market behavior of employed individuals that have entrepreneurial aspirations in addition to aspirations to switch job. We analyze empirically these two “search processes” side-by-side and report three main findings: First, neither entrepreneurial aspirations nor aspirations to switch job are uncommon, but only few are engaged in both search processes. Second, the two processes are not alike: It is more difficult to empirically explain entrepreneurial aspirations than aspirations to switch job. Only few observable characteristics of the employed are related to both processes. Varied experience and job dissatisfaction are directly related to the probability of having entrepreneurial aspirations and aspirations to switch job, while job tenure is inversely related to them. Finally, the two processes are not conditionally independent. Unobservable heterogeneity common to many non-searchers drives this result.

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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0501003.

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Length: 33 pages
Date of creation: 04 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwpla:0501003

Note: Type of Document - pdf; pages: 33
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Web page: http://128.118.178.162

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Keywords: entrepreneurship; job search; experience; job satisfaction;

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References

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  1. Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
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  16. Hellmann, Thomas F., 2002. "When Do Employees Become Entrepreneurs?," Research Papers 1770, Stanford University, Graduate School of Business.
  17. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
  18. J.S. Cramer, 1998. "Predictive Performance of the Binary Logit Model in Unbalanced Samples," Tinbergen Institute Discussion Papers 98-085/4, Tinbergen Institute.
  19. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
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Cited by:
  1. Petri Böckerman & Pekka Ilmakunnas, 2005. "Job disamenities, job satisfaction, and on-the-job search: is there a nexus?," Labor and Demography 0501002, EconWPA.

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