Financial Development, Entrepreneurship, and Job Satisfaction

Milo Bianchi

The Review of Economics and Statistics, 2012, vol. 94, issue 1, 273-286

Abstract: This paper shows that utility differences between the self-employed and employees increase with financial development. This effect is explained not by increased profits but by an increased value of nonmonetary benefits, in particular job independence. We interpret these findings by building a simple occupational choice model in which financial constraints may impede the creation of firms and depress labor demand, thereby pushing some individuals into self-employment for lack of salaried jobs. In this setting, financial development favors a better matching between individual motivation and occupation, thereby increasing entrepreneurial utility despite increasing competition and so reducing profits. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/REST_a_00156 link to full text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Financial Development, Entrepreneurship, and Job Satisfaction (2012)
Working Paper: Financial Development, Entrepreneurship, and Job Satisfaction (2012)
Working Paper: Financial development, entrepreneurship and job satisfaction (2008)
Working Paper: Financial development, entrepreneurship and job satisfaction (2008)
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:tpr:restat:v:94:y:2012:i:1:p:273-286

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().