Prior Work Experience and Entrepreneurship: The Careers of Young Entrepreneurs

Nicolas Gendron-Carrier

Journal of Labor Economics, 2026, vol. 44, issue 4, 1259 - 1298

Abstract: Using Canadian administrative data, I study the careers of young entrepreneurs and the heterogeneity among them. I investigate both the mechanisms that drive entry into entrepreneurship and the determinants of entrepreneurial success. Empirically, entrepreneurs who have previously worked in high-wage firms tend to do better. I explain this finding using a dynamic model of career choice that features heterogeneous employers, human capital accumulation, and unobserved heterogeneity across individuals. Among other things, I find that prior work experience is particularly valuable for relatively low-ability individuals. I use the estimated model to evaluate policies designed to promote entrepreneurship.

Date: 2026
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