Windfalls, Wealth, and the Transition to Self-Employment

Yannis Georgellis (), John Sessions () and Nikolaos Tsitsianis

Small Business Economics, 2005, vol. 25, issue 5, 407-428

Abstract: We examine the transition to, and survival in, self-employment among a sample of British workers. We find evidence of capital constrains, with wealthier individuals being more likely to transit ceteris paribus. Windfall gains raise the probability of transition at a decreasing rate – gains or more than £20000–£22000 reduce the probability of transition – and larger gains reduce the probability of transition amongst relatively wealthier respondents. We also find peculiarities in the effects of particular types of windfall; redundancy payments and inheritances raise the probability of transition, whilst lottery wins reduce the probability of (especially male) transitions. In contrast, inheritances (lottery wins) hinder (augment) self-employment survival. Copyright Springer 2005

Keywords: Self-employment; transitions; windfalls; J0; J5; J23 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (29)

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DOI: 10.1007/s11187-004-6477-9

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