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Entrepreneurship and welfare

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  • Jagannadha Tamvada

Abstract

We examine returns to entrepreneurship using a standard measure of welfare, the per capita consumption expenditure. Using quantile regressions, we find welfare hierarchy in occupations. The results suggest that, across the welfare distribution, entrepreneurs who employ others have the high-test returns in terms of consumption, while those entrepreneurs who work for themselves, that is, self-employed individuals, have slightly lower returns than the salaried employees. However, self-employment entails higher returns than casual labour and an escape from poverty.
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Suggested Citation

  • Jagannadha Tamvada, 2010. "Entrepreneurship and welfare," Small Business Economics, Springer, vol. 34(1), pages 65-79, January.
    • Handle: RePEc:kap:sbusec:v:34:y:2010:i:1:p:65-79
    DOI: 10.1007/s11187-009-9195-5
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    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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