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Title: Selection into Entrepreneurship and Self-Employment
Resulting in 1 citation.
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Levine, Ross Rubinstein, Yona |
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Selection into Entrepreneurship and Self-Employment NBER Working Paper No. 25350, National Bureau of Economic Research, December 2018. Also: https://www.nber.org/papers/w25350 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Armed Forces Qualifications Test (AFQT); Entrepreneurship; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Rotter Scale (see Locus of Control); Self-Employed Workers; Wealth We study the effects of ability and liquidity constraints on entrepreneurship. We develop a three sector Roy model that differentiates between entrepreneurs and other self-employed to address puzzling gaps that have emerged between theory and evidence on entry into entrepreneurship. The model predicts--and the data confirm--that entrepreneurs are positively selected on highly-remunerated human capital, but other self-employed are negatively selected on those same abilities; entrepreneurs are positively selected on collateral, but other self-employed are not; and entrepreneurship is procyclical, but self-employment is countercyclical. |
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Bibliography Citation
Levine, Ross and Yona Rubinstein. "Selection into Entrepreneurship and Self-Employment." NBER Working Paper No. 25350, National Bureau of Economic Research, December 2018. |