The best and the brightest or the least successful? Self-employment entry among male wage-earners in Sweden
This paper analyzes self-employment entry among Swedish-born male wage-earners. Is it the best and the brightest or the least successful that become self-employed? The residual from an income regression is used as an indicator of who belongs to which group. We find that both wage-earners who receive a lower income than predicted, i.e. have a negative residual, and those who receive a higher income than predicted, i.e. have a positive residual, are more likely to become self-employed than those who receive an income close to the predicted one. However, splitting self-employment into different types depending on corporate form and number of employees, we find that the self-employed are drawn from both tails of the residual distribution only if it is a matter of unincorporated firms. Wage-earners who become self-employed and start an incorporated firm are only drawn from the top of the residual distribution. Using self-employment income and turnover as measures of self-employment performance, we find a positive linear relationship between the income residual and performance. Copyright Springer Science+Business Media, LLC. 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davidsson, Per & Henrekson, Magnus, 2000.
"Determinants of the Prevalence of Start-ups and High-Growth Firms,"
SSE/EFI Working Paper Series in Economics and Finance
381, Stockholm School of Economics, revised 26 May 2002.
- Davidsson, Per & Henrekson, Magnus, 2002. " Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
- Joseph Altonji & R. Shakotko, 1985.
"Do Wages Rise with Job Seniority?,"
567, Princeton University, Department of Economics, Industrial Relations Section..
- Bjuggren, Carl Magnus & Johansson, Dan & Stenkula, Mikael, 2010.
"Using Self-employment as Proxy for Entrepreneurship: Some Empirical Caveats,"
Working Paper Series
845, Research Institute of Industrial Economics.
- Bjuggren, Carl Magnus & Johansson, Dan & Stenkula, Mikael, 2010. "Using Self-employment as Proxy for Entrepreneurship: Some Empirical Caveats," Ratio Working Papers 154, The Ratio Institute.
- von Greiff, Jenny, 2009. "Displacement and self-employment entry," Labour Economics, Elsevier, vol. 16(5), pages 556-565, October.
- Gielen, A. C. & van Ours, J.C., 2006.
"Why do Worker-Firm Matches Dissolve?,"
2006-57, Tilburg University, Center for Economic Research.
- Henrekson, Magnus & Stenkula, Mikael, 2009. "Entrepreneurship and Public Policy," Working Paper Series 804, Research Institute of Industrial Economics.
- Magnus Henrekson, 2005.
"Entrepreneurship: a weak link in the welfare state?,"
Industrial and Corporate Change,
Oxford University Press, vol. 14(3), pages 437-467, June.
- Henrekson, Magnus, 2002. "Entrepreneurship: A Weak Link in the Welfare State," SSE/EFI Working Paper Series in Economics and Finance 518, Stockholm School of Economics, revised 04 Mar 2005.
- Andrew Burke & Felix FitzRoy & Michael Nolan, 2008.
"What makes a die-hard entrepreneur? Beyond the ‘employee or entrepreneur’ dichotomy,"
Small Business Economics,
Springer, vol. 31(2), pages 93-115, August.
- Burke, Andrew & FitzRoy, Felix & Nolan, Michael A., 2006. "What Makes a Die-Hard Entrepreneur? Beyond the ‘Employee or Entrepreneur’ Dichotomy," IZA Discussion Papers 2307, Institute for the Study of Labor (IZA).
- David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
- Pernilla Andersson & Eskil Wadensjö, 2007.
"Do the unemployed become successful entrepreneurs?,"
International Journal of Manpower,
Emerald Group Publishing, vol. 28(7), pages 604-626, November.
- Pernilla Andersson & Eskil Wadensjö, 2007. "Do the unemployed become successful entrepreneurs?," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 604 - 626, October.
- Bishop, John H, 1990. "Job Performance, Turnover, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 363-86, July.
- Blanchflower, David G., 2000.
"Self-employment in OECD countries,"
Elsevier, vol. 7(5), pages 471-505, September.
- Thomas Astebro & Jing Chen & Peter Thompson, 2010.
"Stars and Misfits: Self-Employment and Labor Market Frictions,"
1003, Florida International University, Department of Economics.
- Thomas Åstebro & Jing Chen & Peter Thompson, 2011. "Stars and Misfits: Self-Employment and Labor Market Frictions," Management Science, INFORMS, vol. 57(11), pages 1999-2017, November.
- George J. Borjas & Stephen G. Bronars, 1988.
"Consumer Discrimination and Self-Employment,"
NBER Working Papers
2627, National Bureau of Economic Research, Inc.
- Folta, Timothy B. & Delmar, Frédéric & Wennberg, Karl, 2010.
Working Paper Series
825, Research Institute of Industrial Economics.
- Jeff Borland & Jenny Lye, 1996. "Matching and mobility in the market for Australian rules football coaches," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(1), pages 143-158, October.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:40:y:2013:i:1:p:155-172. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.