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The decision to become an entrepreneur in Spain: The role of the household financial situation

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  • Molina, Jose Alberto
  • Velilla, Jorge
  • Ortega, Raquel

Abstract

This paper analyses how self-employed (entrepreneurs) and employed workers earnings differ in Spain. We develop an empirical analysis on the factors that determine income and the factors that determine the effects on the financial situation of the families of entrepreneurs versus salaried families. We use the “Encuesta Financiera de las Familias” database corresponding to 2011. Our results show that salaried workers earn more than the self-employed workers. Furthermore, pessimism and familiar patrimony play a key role in the entrepreneur decision.

Suggested Citation

  • Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2015. "The decision to become an entrepreneur in Spain: The role of the household financial situation," MPRA Paper 68101, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68101
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    References listed on IDEAS

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    Cited by:

    1. Ferrando-Latorre, Sandra & Velilla, Jorge, 2018. "La transmisión intergeneracional de la actividad emprendedora en las familias españolas [Intergeneration transmissions of the entrepreneurial activity in Spanish households]," MPRA Paper 83573, University Library of Munich, Germany.
    2. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Older entrepreneurs-by-necessity using fuzzy set methods: differences between developed and developing countries," MPRA Paper 76982, University Library of Munich, Germany.
    3. Jose Ignacio Gimenez-Nadal & Miguel Lafuente & Jose Alberto Molina & Jorge Velilla, 2019. "Resampling and bootstrap algorithms to assess the relevance of variables: applications to cross section entrepreneurship data," Empirical Economics, Springer, vol. 56(1), pages 233-267, January.
    4. Velilla, Jorge, 2018. "The entrepreneurial activity using GEM data: evidence for Spain (national and regional) and for Europe," MPRA Paper 85568, University Library of Munich, Germany.
    5. Velilla, Jorge & Sánchez Gracia, Rebeca, 2018. "El emprendimiento sénior: Marco conceptual y evidencia empírica [Third-age entrepreneurship: Conceptual framework and empirical evidence]," MPRA Paper 83567, University Library of Munich, Germany.
    6. Sergio A. Contreras, 2019. "Self-Employment in Times of Crisis: The Case of the Spanish Financial Crisis," Economies, MDPI, vol. 7(3), pages 1-14, August.
    7. Campaña, Juan Carlos & Gimenez-Nadal, J. Ignacio & Molina, Jose Alberto, 2016. "Diferencias entre auto-empleados y asalariados en los usos del tiempo: Aragón vs. Spain [Differences between self-employees and wage-earners in time uses: Aragon vs. Spain]," MPRA Paper 71463, University Library of Munich, Germany.
    8. Ortega Palacios, Inés, 2020. "Análisis del emprendimiento usando datos GEM: evidencias para la Comunidad de Madrid [Entrepreneurship analysis using Gem data: evidence for Madrid]," MPRA Paper 98687, University Library of Munich, Germany.
    9. Iñiguez, David & Ortega, Raquel & Rivero, Alejandro & Velilla, Jorge, 2018. "Entrepreneurship and social networks in Spain," MPRA Paper 89652, University Library of Munich, Germany.
    10. Bautista-Lacambra, Sergio, 2020. "El emprendimiento en Aragón: La salida de la crisis en forma de foto al emprendimiento [Entrepreneurship in Aragón: The way out of crisis as a picture of entrepreneurship]," MPRA Paper 98704, University Library of Munich, Germany.
    11. Marina Morales & Jorge Velilla, 2021. "The effect of cultural environment on entrepreneurial decisions," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 48(9), pages 1309-1330, June.
    12. Lasierra, Jose Manuel, 2018. "Self-Employment and the Economic Cycle in Spain," MPRA Paper 89593, University Library of Munich, Germany.
    13. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Feminization of entrepreneurship in developing countries," MPRA Paper 76981, University Library of Munich, Germany.
    14. Sandra Ferrando-Latorre & Jorge Velilla & Raquel Ortega, 2019. "Intergenerational Transmission of Entrepreneurial Activity in Spanish Families," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 390-407, September.
    15. García, Lucia, 2018. "El mercado laboral en España desde la oferta: evolución reciente nacional y regional [Supply labour market in Spain: recent evolution at a national and regional level]," MPRA Paper 85262, University Library of Munich, Germany.
    16. Jorge, Velilla, 2017. "Feminization of entrepreneurship in developing countries? Evidence from GEM data," MPRA Paper 79997, University Library of Munich, Germany.
    17. Molina, Jose Alberto & Velilla, Jorge & Ortega, Raquel, 2016. "Entrepreneurial activity in the OECD: Pooled and cross-country evidence," MPRA Paper 71592, University Library of Munich, Germany.
    18. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2016. "A Wage-Efficiency Spatial Model for US Self-Employed Workers," IZA Discussion Papers 9634, Institute of Labor Economics (IZA).
    19. Molina, Jose Alberto & Velilla, Jorge, 2016. "La innovación como determinante pare el emprendimiento [Innovation as determinant of entrepreneurship]," MPRA Paper 71471, University Library of Munich, Germany.
    20. Boldova, Daniel Miguel, 2019. "Efectos económicos de las leyes sobre la estructura familiar: Evidencia internacional del divorcio y la custodia [Economic effects of family structure laws: International evidence of divorce and cu," MPRA Paper 96440, University Library of Munich, Germany.
    21. Gimenez-Nadal, José Ignacio & Lafuente, Miguel & Molina, José Alberto & Velilla, Jorge, 2016. "Resampling and Bootstrap to Assess the Relevance of Variables: A New Algorithmic Approach with Applications to Entrepreneurship Data," IZA Discussion Papers 9938, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Entrepreneurship; Household financial situation; Wages; Self-employment;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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