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Intergenerational correlation in self employment: some further evidence from French ECHP data

David Masclet () and Nathalie Colombier
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Nathalie Colombier: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique

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Abstract: Previous empirical work has shown that self-employment is correlated across generations, so that the children of the self-employed are themselves more likely to be self-employed. However, the reason for this intergenerational correlation remains unclear. This paper contributes to the existing literature in two ways. First, using French data from the European Community Household Panel Survey, we provide a further examination of this intergenerational correlation among the self-employed. In particular we investigate to what extent the intergenerational correlation in self-employment reflects occupational following. The second contribution of our paper is to investigate the differences between first- and second-generation self-employed workers and their possible explanations. Even though our results indicate that having self-employed parents increases the probability of being self-employed, irrespective of occupation, we do observe that a large majority of individuals enter the same (or very similar) occupation as their parents, which is consistent with occupational following. Our results also reveal some differences between the first- and second-generation self-employed. Formal education is more important for the first-generation self-employed (those whose parents are not self-employed) than for the secondgeneration self-employed. Further, the firstgeneration self-employed, who received less informal human capital than the second-generation selfemployed, compensate for this shortcoming by acquiring more formal education.

Keywords: self-employement; human capital intergenerational transmissions (search for similar items in EconPapers)
Date: 2008
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00144842
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Published in Small Business Economics, Springer Verlag, 2008, 30 (4), pp.423-437

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