Financial Development, Entrepreneurship, and Job Satisfaction

Milo Bianchi

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Abstract: This paper shows that utility differences between the self-employed and employees increase with financial development. This effect is not explained by increased profits but by an increased value of non- monetary 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.

Keywords: Financial development; job satisfaction; entrepreneurship (search for similar items in EconPapers)
Date: 2012
Note: View the original document on HAL open archive server: https://hal.science/hal-01629748v1
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Citations: View citations in EconPapers (24)

Published in Review of Economics and Statistics, 2012, 94 (1), ⟨10.1162/REST_a_00156⟩

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Related works:
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)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01629748

DOI: 10.1162/REST_a_00156

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