IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v33y2002i2p216-237.html
   My bibliography  Save this article

The Role of Education in Self–Employment Success in Finland

Author

Listed:
  • Aki Kangasharju
  • Sari Pekkala

Abstract

This paper analyzes the effect of self–employed persons’ education on the success of their firms during the economic downturn and upturn of the 1990's. It is found that the business cycle affects the relative closure rates of firms run by self–employed with any level of education. Exit probability is lower for the highly educated during bust, but higher in boom. This is accounted for by two facts. First, running a small firm is argued to be a less attractive choice to wage work, particularly for the highly educated, due to lower earning prospects, less stable stream of earnings, and the cultural tradition of working in large corporations. Second, the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn. Finally, it was found that regardless of the state of aggregate economy, firms run by the highly educated have higher growth probabilities than those run by less educated persons.

Suggested Citation

  • Aki Kangasharju & Sari Pekkala, 2002. "The Role of Education in Self–Employment Success in Finland," Growth and Change, Wiley Blackwell, vol. 33(2), pages 216-237.
    • Handle: RePEc:bla:growch:v:33:y:2002:i:2:p:216-237
    DOI: 10.1111/0017-4815.00188
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/0017-4815.00188
    Download Restriction: no
    File URL: https://libkey.io/10.1111/0017-4815.00188?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:33:y:2002:i:2:p:216-237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.