Entrepreneurship, Windfall Gains and Financial Constraints: Evidence from Germany

Dorothea Schäfer (), Oleksandr Talavera and Charlie Weir
Additional contact information
Charlie Weir: Aberdeen Business School

No 2010-3, JIBS Working Papers from Jönköping International Business School

Abstract: We investigate the link between the propensity to become an entrepreneur and exogenous release from nancial constraints in Germany. This is de ned in terms of the movement from employment to self employment on receipt of a nancial windfall. A theoretical framework developing Evans and Jovanovic (1989) is set up and tested with panel data from German households. The results show that nancial constraints do exist given that individuals are more likely to start a personal business after receiving a windfall gain. The value of windfall gains has a signi cant but non linear eect on the decision to become self employed. The data reveal that dierences in ability and income aect the change in employment status. We also report that there is no evidence that becoming self employed involves the anticipation of windfall gains.

Keywords: Entrepreneurship; windfall gains; nancial constraints (search for similar items in EconPapers)
Date: 2010-11-17
References: Add references at CitEc
Citations Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Entrepreneurship, windfall gains and financial constraints: Evidence from Germany (2011)
Working Paper: Entrepreneurship, Windfall Gains and Financial Constraints: Evidence from Germany (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhb:hjacfi:2010_003

Access Statistics for this paper

More papers in JIBS Working Papers from Jönköping International Business School
Address: Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden
Contact information at EDIRC.
Series data maintained by Susanne Hansson ().