What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints
The paper studies the factors which shape entrepreneurship among young adults. It finds, using data on a British birth cohort, that the probability of self-employment depends sensitively upon whether the individual ever received a gift or inheritance. Those who were given or inherited £5,000, for example, were approximately twice as likely, ceteris paribus, to set up in business. This is consistent with, and a new test of, recent results from the US stressing the importance of capital and liquidity constraints. The paper also evaluates a number of hypotheses suggested in the literature on small businesses.
|Date of creation:||Feb 1990|
|Date of revision:|
|Publication status:||published as Blanchflower, David G. and Andrew J. Oswald. "What Makes An Entrepreneur?," Journal of Labor Economics, 1998, v16(1,Jan), 26-60.|
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- Borjas, George J & Bronars, Stephen G, 1989.
"Consumer Discrimination and Self-employment,"
Journal of Political Economy,
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- Connolly, Sara & Micklewright, John & Nickell, Stephen, 1992. "The Occupational Success of Young Men Who Left School at Sixteen," Oxford Economic Papers, Oxford University Press, vol. 44(3), pages 460-79, July.
- Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June.
- Victor R. Fuchs, 1982. "Self-Employment and Labor Force Participation of Older Males," Journal of Human Resources, University of Wisconsin Press, vol. 17(3), pages 339-357.
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