Economics at your fingertips  

An Empirical Study of the Transition from Paid Work to Self-Employment

S. Ramakrishna Velamuri and S. Venkataraman
Additional contact information
S. Venkataraman: University of Virginia

Journal of Entrepreneurial Finance, 2005, vol. 10, issue 1, 1-16

Abstract: We explore the transition from paid work to self-employment using three explanatory variables: paid income, predicted income, and income for ability. We find no linear relationship between the three variables and the self-employment transition. We then test for curvilinear relationships. We find that individuals with low incomes are more likely to take up self-employment. Further, income for ability is the strongest predictor of the transition to self-employment. The relationship between ability and self-employment is U-shaped: very low ability and very high ability individuals are more likely to take up self-employment.

Keywords: Self Employment; Labor Demand (search for similar items in EconPapers)
JEL-codes: J23 M13 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
Working Paper: An empirical study of the transition from paid work to self-employment (2004) Downloads
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:

Access Statistics for this article

More articles in Journal of Entrepreneurial Finance from Pepperdine University, Graziadio School of Business and Management Contact information at EDIRC.
Bibliographic data for series maintained by Craig Everett ().

Page updated 2019-12-02
Handle: RePEc:pep:journl:v:10:y:2005:i:1:p:1-16