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An empirical analysis of the relationship between entrepreneurship and income inequality

Author

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  • Bebonchu Atems

    (Clarkson University)

  • Grayden Shand

    (Clarkson University)

Abstract

The paper estimates the relationship between entrepreneurship and income inequality. Using US state-level data for the period 1989 to 2013, and the system generalized method of moments (GMM) estimator, we find a significant positive relationship between entrepreneurship and income inequality. This finding is generally robust across alternative measures of inequality and entrepreneurship.

Suggested Citation

  • Bebonchu Atems & Grayden Shand, 2018. "An empirical analysis of the relationship between entrepreneurship and income inequality," Small Business Economics, Springer, vol. 51(4), pages 905-922, December.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:4:d:10.1007_s11187-017-9984-1
    DOI: 10.1007/s11187-017-9984-1
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    22. Schröpf, Benedikt, 2021. "The dynamics of wage dispersion between firms: The role of firm entry and exit," Discussion Papers 120, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
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    More about this item

    Keywords

    Inequality; Entrepreneurship; System GMM;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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