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The best and the brightest or the least successful? Self-employment entry among male wage-earners in Sweden
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
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
Abstract [en]

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.
Keyword [en]
Self-employment entry, Entrepreneurship, Occupational choice, Occupational mobility, Self-employment performance
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-86648DOI: 10.1007/s11187-011-9365-0ISI: 000313520900011OAI: oai:DiVA.org:su-86648DiVA: diva2:588161
Available from: 2013-01-15 Created: 2013-01-15 Last updated: 2017-12-06Bibliographically approved

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Andersson Joona, PernillaWadensjö, Eskil
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CiteExportLink to record
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