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The imprint of labor markets on entrepreneurial performance

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  • Kwon, Seok-Woo
  • Ruef, Martin

Abstract

Using the 1979–2010 waves of the National Longitudinal Survey of Youth, our study tracks the earnings of individual entrepreneurs from the beginning of their entrepreneurial careers, examining the effects of labor markets on their earnings trajectory. Results show that apart from self-selection, labor markets impose a penalty on the initial earnings of entrepreneurs who start a business in adverse economic conditions, a disadvantage that persists for up to a decade. We also identify two factors expected to alleviate the imprinting effect of labor markets: migration outside the imprinting environment and serial entrepreneurship.

Suggested Citation

  • Kwon, Seok-Woo & Ruef, Martin, 2017. "The imprint of labor markets on entrepreneurial performance," Journal of Business Venturing, Elsevier, vol. 32(6), pages 611-626.
    • Handle: RePEc:eee:jbvent:v:32:y:2017:i:6:p:611-626
    DOI: 10.1016/j.jbusvent.2017.08.002
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    Cited by:

    1. Lien De Cuyper & Bart Clarysse & Nelson Phillips, 2020. "Imprinting Beyond the Founding Phase: How Sedimented Imprints Develop over Time," Organization Science, INFORMS, vol. 31(6), pages 1579-1600, November.
    2. Liu, Feifei & He, Xinming & Wang, Tao, 2023. "In the name of the family: The effect of CEO clan culture background on firm internationalization," Journal of Business Research, Elsevier, vol. 161(C).
    3. Siqueira, Ana Cristina O. & Guenster, Nadja & Vanacker, Tom & Crucke, Saskia, 2018. "A longitudinal comparison of capital structure between young for-profit social and commercial enterprises," Journal of Business Venturing, Elsevier, vol. 33(2), pages 225-240.
    4. Liu, Jingting & Zhu, Ying & Serapio, Manuel & Cavusgil, S. Tamer, 2019. "The new generation of millennial entrepreneurs: A review and call for research," International Business Review, Elsevier, vol. 28(5), pages 1-1.

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    More about this item

    Keywords

    Imprinting; Income trajectory; Self-employment; Resource scarcity;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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