Self-Employment and Wealth Inequality

Thomas Lindh () and Henry Ohlsson ()

Review of Income and Wealth, 1998, vol. 44, issue 1, pages 25-42

Abstract: Is the decision to become and stay self-employed constrained by access to credit? If this is the case, a more unequal wealth distribution will--for empirically observed distributions--imply more self-employed, since the number of people able to provide collateral will be higher. Swedish data between 1920 and 1992 suggest that wealth inequality and the share of self-employed among those working are positively related. The data, therefore, are consistent with the hypothesis that liquidity constraints are binding on the decision to become and stay self-employed. Copyright 1998 by The International Association for Research in Income and Wealth.

Date: 1998
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