Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars

Holtz-Eakin Douglas () and Harvey Rosen ()
Additional contact information
Holtz-Eakin Douglas: Syracuse University

The B.E. Journal of Economic Analysis & Policy, 2005, vol. 4, issue 1, 1-26

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 United States, and the rate of transition from wage-earning to self-employment is lower as well. Our results suggest that German workers face liquidity constraints that are more severe than those of their American counterparts and an environment that discourages transitions to self-employment. The difference in transition rates cannot be attributed to observable differences between German and American workers.

Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
https://doi.org/10.2202/1538-0645.1029 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Cash Constraints and Business Start-ups: Deutschmarks versus Dollars (1999)
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: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:contributions.4:y:2005:i:1:n:1

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1538-0645.1029

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().