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The Long-Term Impact of Inequality on Entrepreneurship and Job Creation

Year: 2015

Type: preprint

Abstract: We assess the extent to which historical levels of inequality affect the likelihood of businesses being created, surviving and of these creating jobs overtime. To this end, we build a pseudo-panel of entrepreneurs across 48 countries using the Global Entrepreneurship Monitor Survey over 2001-2009. We complement this pseudo-panel with historical data of income distribution and indicators of current business regulation. We find that in countries with higher levels of inequality in the 1700s and 1800s, businesses today are more likely to die young and create fewer jobs. Our evidence supports economic theories that argue initial wealth distribution influences countries' development path, having therefore important policy implications for wealth redistribution.

Source: RePEc: Research Papers in Economics

Authors: Roxana Gutiérrez‐Romero, Luciana Méndez Errico

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: green

Funders: University of Oxford, Department for International Development, Ministerio de Ciencia e Innovación, St. Antony's College, University of Oxford

Award: G461109019

OpenAlex ID: W1571662424

Cites: 53

Cited by: 3

Related to: 10