How former business owners fare in the labor market? Job assignment and earnings

Rui Baptista (), Francisco Lima and Miguel Torres Preto

European Economic Review, 2012, vol. 56, issue 2, 263-276

Abstract: This study uses detailed longitudinal matched employer–employee data to examine the impact of entrepreneurial experience on job assignments, careers, and wages. The results suggest that there are significant differences in career mobility between former business owners and workers who were always wage employees. Former business owners enter firms at higher job levels and progress faster up the hierarchy than wage employees without entrepreneurial experience. The majority of the former business owners find jobs in small firms. The return to business ownership experience is lower than the return to wage employee experience, thus suggesting that the labor market imposes a penalty for business ownership experience.

Keywords: Entrepreneurship; Business owner experience; Internal labor markets; Task-specific human capital; Matched employer–employee data (search for similar items in EconPapers)
JEL-codes: J31 L26 M51 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:2:p:263-276

DOI: 10.1016/j.euroecorev.2011.08.004

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