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Title:When do employees leave their job for entrepreneurship: Evidence from linked employer-employee data PDF Logo
Authors:Hyytinen, Ari
Maliranta, Mika
Issue Date:2006
Series/Report no.:ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1023
Abstract:Existing firms are argued to be an important source of new entrepreneurs. Yet, relatively little is known about the characteristics of firms that breed new entrepreneurs. We use a large linked employee-employer dataset to trace and characterize the types of firms from which new entrepreneurs come in Finland. We find evidence for entrepreneurial learning in smaller firms, for they spawn new entrepreneurs more frequently than larger firms. We also find that the productivity of firms and their R&D-intensity are negatively related to the probability that employees transit into entrepreneurship. These results are robust to controlling for a number of employee and employer attributes.
Subjects:entrepreneurship, occupation choice, mobility
JEL:G14
G31
G32
Document Type:Working Paper
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy

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