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IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >
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http://hdl.handle.net/10419/33462
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| Title: | | A selection-based theory of the transition from employment to entrepreneurship: the role of employer size  |
| Authors: | | Parker, Simon C. |
| Issue Date: | | 2006 |
| Series/Report no.: | | IZA Discussion Papers 2071 |
| Abstract: | | A simple occupational choice model is used to predict that entrepreneurs who found new firms are more likely to work for small than for large firms prior to start-up. The mechanism underlying the result is heterogeneous risk aversion. The model also predicts a positive association between new firm formation and previous self-employment experience. These predictions accord with previous empirical findings, but notably self-selection rather than productivity effects can explain them. |
| Subjects: | | entrepreneurship occupational choice firm size |
| JEL: | | J21 J23 J62 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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