Windfalls, wealth, and the transition to self-employment

Publication type

Journal Article

Authors

Publication date

June 1, 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

Volume: 25 (5):407-428

DOI

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

Subjects

Notes

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

#508270

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest