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Self Employment among Graduates

Peter Dolton and Gerald Makepeace

Bulletin of Economic Research, 1990, vol. 42, issue 1, 35-53

Abstract: An econometric model of the self-employment decision is estimated for a large sample of U.K. graduates. Although the earnings distributions suggest that there are incentives to be self-employed, the difference in the predicted earnings that an individual receives in the self-employed and employed sectors is not a significant influence on the choice of sector and the decision depends on personal and social factors. Policies based on changing the pecuniary returns may not encourage the growth of self-employment among graduates. The econometric results also suggest that the self-employed are a nonrandom subset of the graduate workforce. Copyright 1990 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1990
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