Download or read book Essays on Self employment and Entrepreneurship written by Alejandro Gabriel Rasteletti and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Entrepreneurship and Education written by Christopher J. Youderian and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The first essay tests whether the returns to education are different between entrepreneurs and regular employees. If the signaling model of education is correct, entrepreneurs should receive lower returns from education (relative to employees) because they have no need to signal their productivity to an employer. However, this result should only hold if the researcher is able to control for selection into self-employment and the endogeneity of education. This is illustrated using a stylized model of signaling. The relationship between self-employment and the returns to education is tested using data from the 1996 Survey of Income and Program Participation. This rich panel dataset makes it possible to control for many business-specific characteristics, like business equity, that have been previously unaccounted for in the literature. Ordinary least squares regressions find the correlation between education and earnings to be weaker for entrepreneurs. To control for selection, I utilize a Heckman selection model using spousal health insurance and housing equity as instruments. It shows that selection biases downward the correlation between education and income for entrepreneurs. Finally, a fixed effects model is employed to control for any time invariant unobserved heterogeneity. This approach indicates that education is as valuable, if not more valuable, to entrepreneurs as it is to employees. This does not support the signaling hypothesis. The finding is robust to different measures of entrepreneurial earnings. The second essay explores whether unemployed workers make successful transitions into self-employment. It is well established that unemployed workers are more likely to transition into self-employment than individuals coming from paid employment. A growing body of literature suggests that these formerly unemployed entrants tend to exit self-employment earlier than typical entrants. It is tempting to attribute this result to differences in ability between the two groups. However, using an adapted version of Frank (1988)'s Intertemporal Model of Industrial Exit, I show that this is not the case. In this model, entrants to self- employment receive noisy information about their true entrepreneurial ability from their earnings in the market. I show that low ability entrants to entrepreneurship should be no more likely to exit self-employment than high ability entrants to self-employment. This is because although low ability entrants will earn less as entrepreneurs, their outside wage in paid employment will also be proportionately lower. Survival in self-employment, therefore, is a function of how initial expectations match reality. This leads me to suggest that the high exit rates out of self-employment for the formerly unemployed may be because this group systematically overestimates their entrepreneurial ability at entry. This hypothesis is justified by evidence from the psychology literature that low ability individuals tend to overestimate their performance. Duration analysis on data from the 1996 and 2001 panels of the Survey of Income and Program Participation confirms that the formerly unemployed are more likely to exit self-employment. I also find preliminary evidence consistent with the hypothesis that the unemployed overestimate their likelihood of success in self-employment. These findings should give policymakers pause before incentivicing the unemployed to enter self-employment.

Download or read book Essays on the Determinants of Self employment written by Edvard Johansson and published by . This book was released on 2000 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Macroeconomics Self employment and Small Business in Cities written by Maksim Belitski and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The first essay studies the effects of exogenous and endogenous shocks on output sustainability in Central Eastern Europe and Russia during the 2000s. It expands traditional vector autoregressive model to a multi-country model that relates bank real lending, the cyclical component of output and spreads and accounts for cross-sectional dependence across the countries. Impulse response functions show that exogenous positive shock lead to a drop in output sustainability for nine over twelve Central Eastern European countries, when the endogenous shock is mild and ambiguous. Moreover the effect of the exogenous shock is more significant in the aftermath the crises. The second essay investigates variation in entrepreneurial activity, as proxied by the rate of self-employment, across 374 European cities during the period of 1989-2010. While controlling for various spillover effects across cities we find that the rate of self-employment is largely explained by the level of education, urbanisation economies, institutional environment and industrial structure of a city. Self-employment rates are higher in agriculture and fishing industry; trade, hotels and restaurants industry; meanwhile mining, manufacturing and energy sector with higher positive effect of scale abandon self-employment. At the same time a U-shaped relationship per resident income determines existence of both necessity driven and genuine self-employment. The third essay explains variation in entrepreneurship across cities of Commonwealth of Independent States during 1995-2008, utilizing a unique database and employing dynamic panel data analysis. The findings suggest that banking reform facilitates entrepreneurship, whereas the size of the state discourages it. A U-shaped relationship between per capita income and entrepreneurship is confirmed. It's established that a city with a higher concentration of universities is likely to have higher entrepreneurial entry that provides some evidence for the importance of agglomeration economies in terms of knowledge concentration which leads to intensified exchange of ideas and drive knowledge-based entrepreneurship.

Download or read book Essays in Labor Markets written by Ximena Peña-Parga and published by ProQuest. This book was released on 2008 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: The third Chapter, coauthored with Camilo Mondragon-Velez, explores the question of whether "pure" self-employment in Colombia is a form of, or a path, to entrepreneurship. We study the motivations to become an entrepreneur by, first, analyzing the transition into and out of potential forms of entrepreneurship. Second, we focus on the financial motivations by measuring the differences in earnings of self-employment and business ownership relative to salaried work. The results of this paper suggest that while business ownership is what the literature associates with entrepreneurship, self-employment is basically a subsistence activity.

Download or read book Essays on Business Ownership and Self employment written by Robert Munk and published by . This book was released on 2016 with total page 152 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three chapters on self-employment and business ownership. In the first chapter, I re-examine the earnings differential between self- and wage-employed men. Using data from the 1979 National Longitudinal Survey of Youth, I find that the timing and (voluntary or involuntary) nature of men’s transitions into self-employment are important determinants of whether they receive wage-gains. I find that when a man transitions from wage-employment to self-employment voluntarily and early in his career, his wage is predicted to increase contemporaneously by 31%. The magnitude of this increase is 2.6 times larger than the predicted wage change associated with a voluntary, early-career transition to a new wage job. Conversely, I find that when a man transitions from wage-employment to self-employment involuntarily and late in his career, his predicted wage decreases contemporaneously by 18%. The magnitude of this decrease is larger than the predicted 13% wage decrease associated with an involuntary, late career transition to a new wage job. In the second chapter, motivated by the finding that partnered men and women are more likely to become business owners than are their single counterparts, I ask whether the observed marriage and cohabitation effects are a result of partner income. Using data from the 1979 National Longitudinal Survey of Youth, I first show that when partner income is included as a control, the marriage and cohabitation effects decrease substantially for women, while the effects persist for men. Second, I show that the marriage and cohabitation effects vary with partner income for women but not men. For example, a woman whose husband’s income is in the fifth quintile is 1.9 times more likely to transition to business ownership than a woman whose husband’s income is in the second quintile for men. On the other hand, a married man with a high-income wife is no more or less likely to transition to business ownership than a married man with a low-income wife. In the third chapter, re-examine Lazear’s (2005) jack-of-all-trades theory. Using data from the 1979 National Longitudinal Survey of Youth, I ask, what are the wage gains associated with a self-employed worker’s prior occupational experience? Overall, I find results consistent with Lazear’s theory, which suggests that the returns to occupational specialization are substantially larger for wage workers than the self-employed. I predict that self-employed workers with ten years of prior occupational experience earn a wage that is only 3.2% greater than do self-employed workers with two years of prior occupational experience. However, for wage workers I predict that the wage gains associated with a ten year increase in prior occupational experience (zero to ten years) is 2.1 times larger than the wage gains associated with a two year increase (zero to two years) in prior occupational experience.

Download or read book Essays on Self employment in Africa written by Jonathan Lain and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Entrepreneurial Skills Trust and Jobs Three Essays on Entrepreneurial Skills of Self employed and Employees written by Jaume Teodoro i Sadurní and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is an empirical study that sets out to explain entrepreneurial activity, based on a broad concept of entrepreneurship. The study is based on the development of logistic regression models for a dichotomous variable of entrepreneurship, which we attempt to explain, always working from observational data from third party sources, basically GEM and REFLEX. In the course of the thesis, we set out to explain entrepreneurial activity, starting with an initial approach that looks at institutional context and moving immediately to a second approach based on human capital. The study also incorporates both a closed-spectrum concept associated with self-employment as an occupational choice and a broad concept based on the behavioural approach, in other words, on the entrepreneur as an agent of change in an economic environment based on innovation.

Download or read book Three Essays on Entrepreneurship Reassessing Puzzles and Assumptions written by Frederick Nickolay Alexander Lehmann and published by . This book was released on 2007 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Influence of Formal Institutions on Entrepreneurship written by Michael David Crum and published by . This book was released on 2011 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three essays in which I examine the influence of formal institutions on entrepreneurs and new firms. In the first essay, "The Influence of Institutions on the Likelihood of Self-Employment: A Multilevel Analysis" I examine how institutions at the country-level are related to the likelihood that individuals in those country are self-employed. Country-level measures of formal institutions are paired with individual-level data on self-employment from the Global Entrepreneurship Monitor (Reynolds et al., 2005). Using the Fraser Institute's Economic Freedom of the World index and the Heritage Foundation's Index of Economic Freedom separately as measures of institutions, I find that sound money in a country is positively associated with individual self-employment with both indices. Property rights and trade freedom are positively related to self-employed using the Economic Freedom of the World index. In the second essay, "Labor Market Institutions and New Firm Employment Growth,'" I examine how state-level labor market characteristics such as minimum wages, union densities, and unemployment insurance premiums influence employment growth in new firms. I use firm-level data from the Kauffman Firm Survey (DesRoches, Robb, & Mulcahy, 2009), which contains data from several thousand new firms for years 2004-2008. Minimum wages, union densities, and unemployment insurance structure do not predict the level of employment in new firms in the manner hypothesized. In the third essay, "The Impact of Taxes and Regulations on New Firm Births and Deaths in State Border Counties" I examine how state-level measures of government size, taxation burdens, unionization levels, and minimum wages influence the birth and death rates of firms in counties located on state borders. Tabulations containing data on establishment births and deaths by U.S. County (Plummer & Headd, 2008) were merged with measures of government size, taxation burdens, union densities, and minimum wages. I find a negative relationship between the overall tax burden and the birth rate of new firms. However, unionization, minimum wages and government size are not related to the birth and death rates of firms in the manner hypothesized.

Download or read book Essays in Entrepreneurship written by Sarada and published by . This book was released on 2011 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three essays in entrepreneurship. Entrepreneurship is a key generator of economic growth. Entrepreneurial firms innovate, both on the product and process margins, creating new technologies and organizational novelties, bringing about positive spillovers to the economy as a whole. As such, understanding the factors underlying such activity is vital. This dissertation is concerned with who becomes an entrepreneur and why he or she does so, what factors influence the success of an entrepreneurial venture, and what types of institutions best facilitate entrepreneurial activity. The first chapter resolves a longstanding empirical puzzle; that most entrepreneurs enter and persist in self-employment, despite lower initial earnings and earnings growth (Hamilton, 2000). I hypothesize that reported income is not a good measure for the returns to self-employment. The self-employed have the ability to underreport earnings (estimated to be between 18 and 57 percent (Slemrod, 2007)), and can compensate themselves in various ways that do not manifest as reported labor income. The estimation strategy employed to test this hypothesis relies on the presumption that reported consumption by the self-employed will not be systematically misreported, even though income can easily be. Using longitudinal data from the PSID, I find that while individuals report earning 27 percent less in self-employment they in fact consume 5 percent more. This implies a 32 percent differential between reported wage and consumption for the self-employed. Furthermore, this increased consumption does not seem to be offset by lower savings or higher uncertainty. Other results include that the self-employed work longer hours and that lifetime consumption is no lower for those who leave self-employment. The second chapter links the network structure amongst initial employees to the performance of a newly founded firm. We use a large employee-employer linked panel data set from Brazil that allows us to track workers across jobs and establish whether new firm employees have prior joint work experience. We use this information to construct a quantifier for network concentration using the Herfindahl Hirschman Index (HHI), and test the impact of network concentration on new firm performance as measured by survival, employment, and wages. We find that new firms with higher network concentrations, i.e. wherein initial employees have worked together previously, are on average larger, have higher wages and survive longer when controlling for industry fixed effects and employees' human capital, demographic characteristics, formal sector experience, and size of parent firms. This association increases with the initial size of the newly founded firm. However, we find a negative relationship between network concentration and initial firm growth. Finally, we look at how the size of an individual's parent firm affects the success of her new entrepreneurial venture and find that small firm experience correlates with better survival rates, but lower employment and average wages at the new firm. The third chapter examines the conditions under which an informal network may decide to formalize into an entrepreneurial organization. Such organizations are formal, not-for-profit entities whose main objective is to facilitate networking so as to generate partnerships leading to entrepreneurial ventures. In order to create fruitful business partnerships, both the informal network and the formal organizations seek to grow. The growth process in the informal network occurs via bilateral sponsorship which rigorously screens entrants and is therefore slow, while that for a formal organization is much faster but less certain to only admit high types. We formally model these two entities and set the stage for an analysis of the tradeoffs between them.

Download or read book Essays on Entrepreneurship written by Yvonne Yinghong Zhang and published by . This book was released on 2018 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: My papers have been focused on topics around entrepreneurship. From a micro perspective, my research adds to the still sparse literature on the entrepreneurial decisions within a household framework; while from a macro perspective, my research investigates the recent declining entrepreneurship in the United States during the past two decades. I start in Chapter 2 with the empirical finding that married people are more likely to be entrepreneurs than their single counterparts. I identify a causal effect that marriage increases entrepreneurship by employing a recent marriage policy reform in Australia as a natural experiment. The 2008 federal policy reform requires de facto couples (similar to the common-law marriage) and married couples to be treated equally regarding divorce or separation procedure in all states. I focus on two major states in Australia: Queensland which already had a similar law in place, and New South Wales which had no such legislation prior to the 2008 reform. Using the Household, Income and Labour Dynamics in Australia survey data for the years 2001 to 2015, I demonstrate that the policy reform has a positive effect on marriage through a difference-in-difference approach. By using the policy reform as an instrument variable, I show that marriage can increase the likelihood to be an entrepreneur by 7.96% for men and 1.19% for women. However, this causal effect is not consistent with the hypothesis from the family-insurance incentive, since I find a high rate of spouses both being entrepreneurs. Instead, I show that this causal effect is driven by the commitment to a marital relationship, which facilitates household specialization and joint entrepreneurship. Chapter 3 investigates the downward trend of U.S. self-employment rate as observed in the last two decades. Using data from the Current Population Survey Merged Outgoing Rotation Groups (CPS-ORG), I have decomposed this decline by gender, business incorporation status, industry, and entry/exit employment dynamic. Both the downward trend of non-incorporated businesses and the increasing exiting-rate of self-employment are recognized to be the primary causes of this decline. I have proposed an approach with Probit models to evaluate the net effect of intertwined determinants and demonstrated that many variables such as age and education have affected self-employment tendency differently for men and women. Moreover, through Blinder-Oaxaca decomposition, I have shown that the changing demographic factors could have contributed to an increase in self-employment by 11.9%; while changes in the effects of these determinants have resulted in a counterfactual decline in self-employment by 30.2%. Furthermore, I have analyzed the effect of real wage on self-employment entry as well as the change in this effect over time. Overall, this research provides insights into the future of entrepreneurship and informs economic policymaking.

Download or read book Essays on Self employment of Young Workers written by Taehyun Ahn and published by . This book was released on 2008 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Academic interest in self-employment has grown rapidly in recent decades. However, relatively little is known about the longitudinal patterns of young self-employed workers. In the first essay, I examine the patterns of self-employment that appear in the 1979 National Longitudinal Survey of Youth (NLSY79). I find that most of self-employed workers hold wage jobs before entering self-employment and come back to wage sector after experiencing one or two self-employment spells. Self-employment jobs differ in terms of industry distribution, for both men and women and they are - female self-employment jobs, in particular - likely to entail changes in industry. Additionally, I find that female self-employment spells are more likely to be followed by a large percent of time nonemployed and a small percent of time in the same industry compared to the wage employment while the opposite are true for the male self-employment spells. Risk tolerance and liquidity constraints are widely believed to be key determinants of self-employment, but their independent effects have proved difficult to identify. In the second essay, I specify a theoretical model that illustrates how individual risk tolerance and liquidity constraints affect the decision to become self-employed. I then tackle the empirical identification problem by constructing a measure of risk tolerance that is corrected for reporting error, varies with age and assets, and allows for the endogeneity of assets. In contrast to previous studies that use regional variation in housing prices as an instrument for assets, I address the fact that housing appreciation affects homeowners and nonowners differently. I find that risk tolerant workers are more likely to be self-employed than are their less risk tolerant counterparts. However, net asset levels have an insignificant effect on self-employment entry once absolute risk tolerance is properly taken into account. The absence of successful businesses owned by minorities, and by blacks in particular, is a concern for policy makers. In the third essay, I exploit detailed work history data in the NLSY79 to provide new evidence on the reasons behind the race gap in self-employment. My analysis of an "age uniform" sample of men, all of whom are observed from age 22 to age 40, reveals that racial differences in cross-sectional self-employment rates are largely due to the fact that minority workers' self-employment spells are relatively short-lived. Moreover, I find that minority workers' relatively high exit rates from self-employment are caused primarily by transitions to nonemployment. Estimates from a multinomial logit model of self-employment exits suggest that minority workers' weak attachment to the labor market prior to entering self-employment is an important determinant of their self-employment to nonemployment transitions, while lack of prior industry and self-employment experience contributes to minorities' transitions to nonself-employment.

Download or read book Essays on Immigration and Entrepreneurship written by Alejandro Gutiérrez Li and published by . This book was released on 2020 with total page 135 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation comprises three essays related to the economics of entrepreneurship. Self-employment is a fundamental part of the labor market experiences of workers and is key to economic growth. The first two chapters analyze the relationship between entrepreneurship and immigration. Immigrant entrepreneurship has been growing in the United States, particularly in the last four decades. In Chapter 1, I study the role that pre-migration work experience of immigrants plays in their occupational choices and earnings in the US. In the second chapter of this work, I analyze the relationship between business ownership in Mexico and migration to the US. Mexico is the top source country of immigrants to the US, and a significant fraction of its labor force works in the self-employment sector. Chapter 3 investigates the role that family control plays in different measures of firm performance, CEO turnover, termination payments, and investments in research and development. Many entrepreneurial endeavors arise in families, and family firms are prevalent in both the US and the rest of the world. Immigrant entrepreneurship in the United States has grown steadily in the last forty years. In Chapter 1, I study the occupational choices of legal permanent residents in the US and their associated earnings in paid and self-employment. Making use of a unique data set with pre- and post-migration individual-level information, I analyze the role of home country work experience of immigrants in their probability of becoming entrepreneurs in the US and their earnings after migration. To control for endogenous sector selection in the estimation of earnings distributions, I follow a novel identification strategy based on extremal quantile regressions that does not require exclusion restrictions or a large support variable. I find that foreign work experience in paid and self-employment is an important predictor of entrepreneurship after migration. However, it has a limited impact on earnings which are instead influenced by human capital, assimilation, and demographic characteristics. Overall, my results highlight the role played by immigrants' labor market performance in their home countries to better understand their outcomes in the US. Mexico is one of the countries with the highest self-employment rates in the OECD. While most of the literature has analyzed the occupational choices of returning migrants, I study the relationship between business ownership and migration from Mexico to the United States in Chapter 2. Using longitudinal data from the Mexican Migration Project (MMP), I find that business owners in Mexico are less likely to move North, either legally or illegally. The results are robust after controlling for other factors that have been found to affect migration decisions like age, household characteristics, human capital, and networks. Although running a business could allow individuals to accumulate the necessary resources to finance a costly trip to the US, it also raises the opportunity costs of leaving the country and could increase the attachment and non-pecuniary benefits of staying at home. The findings highlight the role played by the type of occupation held in the home country to better understand the phenomenon of Mexico-US immigration. The last chapter of my dissertation (a joint project), Chapter 3, analyzes a central element associated with entrepreneurial decisions: families. Many companies start at the household level with more than one family member involved. In some cases, firms grow very big and continue in the family for subsequent generations. Using a unique hand-collected data set with information on the last two decades of the universe of public corporations in the US, we examine the role played by family-related CEOs in firms' financial performance, turnover practices, and R&D investments. We provide new evidence showing that firms with CEOs with family relations to other board members, and who have been working for a firm for longer periods of time, are less likely to be forced out of office relative to outsider CEOs. In contrast, we do not find differences in voluntary turnover between outsider and insider CEOs. We document that companies tend to appoint managers who were already working for the firm in another position and do not have family relationships within the organization. We find that managers with longer tenures achieve higher financial performance in the short run, invest less in R&D, and get paid less in case of an involuntary termination than outsider CEOs. Our results are consistent with the notion that family-related CEOs may face different incentives within a company compared to unrelated managers, which could affect firms' outcomes and the interests of minority shareholders.

Download or read book Essays on Self employment written by Moira K. Daly and published by . This book was released on 2010 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Self employment Through Entrepreneurship Development written by Baldev Singh and published by M.D. Publications Pvt. Ltd.. This book was released on 1996 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Employment of the employable manpower,an unavoidable gole of development policy,is best attained by a positive employment policy which involves matching of demographic trends and skill evolution with industrial and technological growth.The present work examines the changing role of self-employment in the national employment markets,dierctly wlth the help of statistics generated by National Sample Survey Organisation and Decennial Census of Degree Holders and Technical Personnel ,and indirectly from National Accounts Statistics.The book also focuses on direct component of employment policy, It lays bare the theoretical limits and empirical reality of self-emplyment opportunites generated by special self-employment programmes.

Download or read book Self Employment Small Firms and Enterprise written by Peter Urwin and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This monograph considers issues that are central to our understanding of self-employment in the UK. The author begins with a review on the evidence of the role of self employment and entrepreneurship in employment creation. The discussion ten moves on to consider self-employment as a route for advancement of many groups in society that face disadvantage in the labour market. The author concludes by considering the role of government in this relationship.