The best and the brightest or the least successful? Self-employment entry among male wage-earners in Sweden
2013 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 40, no 1, 155-172 p.Article in journal (Refereed) Published
This paper analyzes self-employment entry among Swedish-born male wage-earners. Is it the best and the brightest or the least successful that become self-employed? The residual from an income regression is used as an indicator of who belongs to which group. We find that both wage-earners who receive a lower income than predicted, i.e. have a negative residual, and those who receive a higher income than predicted, i.e. have a positive residual, are more likely to become self-employed than those who receive an income close to the predicted one. However, splitting self-employment into different types depending on corporate form and number of employees, we find that the self-employed are drawn from both tails of the residual distribution only if it is a matter of unincorporated firms. Wage-earners who become self-employed and start an incorporated firm are only drawn from the top of the residual distribution. Using self-employment income and turnover as measures of self-employment performance, we find a positive linear relationship between the income residual and performance.
Place, publisher, year, edition, pages
2013. Vol. 40, no 1, 155-172 p.
Self-employment entry, Entrepreneurship, Occupational choice, Occupational mobility, Self-employment performance
IdentifiersURN: urn:nbn:se:su:diva-86648DOI: 10.1007/s11187-011-9365-0ISI: 000313520900011OAI: oai:DiVA.org:su-86648DiVA: diva2:588161