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Education, social identity and self-employment over time: evidence from a developing country

Author

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  • Jagannadha Pawan Tamvada

    (University of Southampton)

  • Mili Shrivastava

    (Bournemouth University)

  • Tapas Kumar Mishra

    (University of Southampton)

Abstract

While the extant literature suggests that an individual’s occupational choice depends on the level of economic development, little is known about how the dynamics of education and social identity impact self-employment choice over time in a developing country setting. The pseudo-panel regression results presented here suggest that higher education decreases the likelihood of individuals’ choice of self-employment over time in India, but increases it in most developed cohorts. Such transitional dynamics are more prominent amongst individuals who belong to historically determined backward classes. Furthermore, the results suggest sectoral differences in self-employment choice—individuals with higher education and wealth have a greater likelihood of transiting into self-employment over time in agriculture while similar individuals in non-agriculture exit self-employment. In both sectors, however, education moderates the impact of social identity on self-employment choice. The paper underscores the need for policy shifts towards entrepreneurship along the path of economic development.

Suggested Citation

  • Jagannadha Pawan Tamvada & Mili Shrivastava & Tapas Kumar Mishra, 2022. "Education, social identity and self-employment over time: evidence from a developing country," Small Business Economics, Springer, vol. 59(4), pages 1449-1468, December.
    • Handle: RePEc:kap:sbusec:v:59:y:2022:i:4:d:10.1007_s11187-021-00583-5
    DOI: 10.1007/s11187-021-00583-5
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    More about this item

    Keywords

    Social class; Self-employment choice; Entrepreneurship; India; Caste; Pseudo-panels;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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