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Financial Capital, Human Capital, and the Transition to Self-Employment:Evidence from Intergenerational Links
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In this article, the authors investigate the relative importance of financial and human capital exploiting the variation provided by intergenerational links, and find that young men's own financial assets exert a statistically significant but quantitatively modest effect on the transition from a wage and salary job to self-employment.Abstract:
The environment for business creation is central to economic policy, as entrepreneurs are believed to be forces of innovation, employment and economic dynamism. We use data from the National Longitudinal Surveys (NLS) to investigate the relative importance of financial and human capital exploiting the variation provided by intergenerational links. Specifically, we estimate the impacts of parental wealth and human capital on the probability that an individual will make the transition from a wage and salary job to self-employment. We find that young men's own financial assets exert a statistically significant, but quantitatively modest effect on the transition to self-employment. In contrast, the capital of parents exerts a large influence. Parents' strongest effect runs not through financial means, but rather through human capital, i.e., the intergenerational correlation in self-employment. This link is even stronger along gender lines.read more
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The Social Dimensions of Entrepreneurship
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The Relationship Between Entrepreneurship Education and Entrepreneurial Intentions: A Meta-Analytic Review
TL;DR: The authors meta-analyzed 73 studies with a total sample size of 37,285 individuals and found a significant but a small correlation between entrepreneurship education and entrepreneurial intentions, which is also greater than that of business education.
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Many are Called, but Few are Chosen: An Evolutionary Perspective for the Study of Entrepreneurship
TL;DR: In this paper, the authors identify three elements indispensable to an understanding of entrepreneurial success: process, context, and outcomes, and propose a taxonomy of environmental forces at different levels of analysis (population, community, and society).
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The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment
TL;DR: Using a new variation of the Blinder-Oaxaca decomposition technique, this paper found that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the black/white gap in the entry rate, but almost none of the gap in exit rate.
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Access (Not) Denied: The Impact of Financial, Human, and Cultural Capital on Entrepreneurial Entryin the United States
TL;DR: The authors examined the relative importance of three forms of resources in pursuing start-up ventures: financial, human, and cultural capital, finding that neither financial nor cultural capital resources are necessary conditions for entrepreneurial entry.
References
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Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
Journal ArticleDOI
An Estimated Model of Entrepreneurial Choice under Liquidity Constraints
David S. Evans,Boyan Jovanovic +1 more
TL;DR: The authors show that the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal, and a would-be entrepreneur must bear most of the risk inherent in his venture.
Journal ArticleDOI
What Makes an Entrepreneur
TL;DR: In this paper, the authors used various micro data sets to study entrepreneurship and found that the probability of self-employment depends positively upon whether the individual ever received an inheritance or gift, and that the self-employed report higher levels of job and life satisfaction than employees.
Book ChapterDOI
Some Empirical Aspects of Entrepreneurship
TL;DR: In this article, the authors examined the process of selection into self-employment over the life cycle and the determinants of self employment earnings using data from the National Longitudinal Survey of Young Men (NLS) for 1966-1981 and the Current Population Surveys for 1968-1987.