Work

Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars

Year: 2005

Type: article

Abstract: In this paper we analyze microdata to explore differences in the rates at which American and German workers leave their salaried jobs to become self-employed. We document that the rate of self-employment is lower in Germany than in the U.S., and the rate of transition from wage-earning to self-employment is lower as well. We find evidence that German workers face liquidity constraints that are more severe than those of their American counterparts. Further, the difference in transition rates cannot be attributed to observable differences between German and American workers.

Source: Contributions in Economic Analysis & Policy

DOI: 10.2202/1538-0645.1029

Authors: Douglas Holtz-Eakin, Harvey S. Rosen

Institutions: Syracuse University, National Bureau of Economic Research, Ifo Institute for Economic Research, Princeton University

Language: German

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W3122898535

FWCI: 2.803

Cites: 17

Cited by: 12

Related to: 10