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Influences on Becoming Self-Employed

Posted by Satya J. Gabriel on October 22, 2001 at 15:48:00:

In Reply to: Re: Mississippi Masala & Self-Employment posted by Cara on October 22, 2001 at 14:30:13:

In a paper by Douglas Holtz-Eakin and Thomas Dunn published in the Journal of Labor Economics, Vol. 18, No. 2, April 2000, pp. 282-305, the authors investigate the relative importance of family financial wealth, education and skills in the transition into self-employment. Specifically, they estimate the impacts of own wealth education and skills and parental wealth and self-employment experience on the probability that an individual makes the transition from a wage and salary job to self-employment. They 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 wealth endowment of parents exerts a large influence. Parents' strongest effect runs not through financial means, but rather through their own self-employment experience and business success. This link is even stronger along gender lines.


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