Financial development, entrepreneurship and job satisfaction

Milo Bianchi

Working Papers from HAL

Abstract: This paper shows that utility differences between the self-employed and the 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 firms' creation 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; entrepreneurship; job satisfaction (search for similar items in EconPapers)
Date: 2008-11
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00586059v1
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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)
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