Cash Constraints and Business Start-ups: Deutschmarks versus Dollars
Douglas Holtz-Eakin and
Harvey Rosen ()
No 11, Center for Policy Research Working Papers from Center for Policy Research, Maxwell School, Syracuse University
In this paper we analyze microdata to explore differences in the rates at which American and German workers leave their salaried jobs to become self-employed. We document that the rate of self-employment is lower in Germany than in the U.S., and the rate of transition from wage-earning to self-employment is lower as well. We find evidence that German workers face liquidity constraints that are more severe than those of their American counterparts. Further, the difference in transition rates cannot be attributed to observable differences between German and American workers.
JEL-codes: G24 J23 M13 O57 (search for similar items in EconPapers)
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Journal Article: Cash Constraints and Business Start-Ups: Deutschmarks Versus Dollars (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:max:cprwps:11
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