Work

An Empirical Study of the Transition from Paid Work to Self-Employment

Year: 2005

Type: article

Abstract: We explore the transition from paid work to self-employment using three explanatory variables: paid income, predicted income, and income for ability. We find no linear relationship between the three variables and the self-employment transition. We then test for curvilinear relationships. We find that individuals with low incomes are more likely to take up self-employment. Further, income for ability is the strongest predictor of the transition to self-employment. The relationship between ability and self-employment is U-shaped: very low ability and very high ability individuals are more likely to take up self-employment.

Source: The Journal of Entrepreneurial Finance

DOI: 10.57229/2373-1761.1223

Authors: S. Ramakrishna Velamuri, S. Venkataraman

Institutions: China Europe International Business School, Universidad de Navarra, University of Virginia

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, No poverty

Open Access status: bronze

Funder: Batten Institute for Innovation and Entrepreneurship, Darden School of Business, University of Virginia