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Journal Article

Windfalls, wealth, and the transition to self-employment

Authors

Publication date

2005

Abstract

We examine the transition to, and survival in, self-employment among a sample of British workers. We find evidence of capital constrains, with wealthier individuals being more likely to transit ceteris paribus. Windfall gains raise the probability of transition at a decreasing rate - gains or more than £20000-£22000 reduce the probability of transition - and larger gains reduce the probability of transition amongst relatively wealthier respondents. We also find peculiarities in the effects of particular types of windfall; redundancy payments and inheritances raise the probability of transition, whilst lottery wins reduce the probability of (especially male) transitions. In contrast, inheritances (lottery wins) hinder (augment) self-employment survival.

Published in

Small Business Economics

Volume

25 (5):407-428

DOI

http://dx.doi.org/10.1007/s11187-004-6477-9

Subjects

Labour Market and Income Dynamics

Links

http://serlib0.essex.ac.uk/record=b1611787~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#508270


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