Entrepreneurship from Scratch: Lessons on the Entry Decision into Self-Employment from Transition Economies

Arbeitspapier

This paper exploits the rapid rise in self-employment rates in post-communist Eastern Europe as a valuable ?quasi-experiment? for understanding the sources of entrepreneurship. A relative demand-supply model and an individual sectoral choice model are used to analyze a 1993 survey of 27,000 adults in six transition economies. Estimated selfemployment earnings premia are positive, and the data imply positive selection into both employee and self-employment status. Structural probit estimates show the probability of self-employment entry is unassociated with former Communist Party affiliation but positively related to schooling, pre-transition family income, receipt of property in restitution, precommunist family business-holding, and predicted earnings differential. Cross-country variation in predicted self-employment entry rates and relative earnings provide evidence on the demand and supply factors affecting the decision to become an entrepreneur.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 79

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Labor Demand ; Comparative Studies of Countries ; New Firms; Startups ; Job, Occupational, and Intergenerational Mobility; Promotion
• Thema: Entrepreneurship ; self-employment ; transition ; small business ; selection bias ; structural probit Eastern Europe ; Bulgaria ; Czech Republic ; Selbstständige ; Unternehmensgründung ; Übergangswirtschaft ; Bulgarien ; Tschechische Republik ; Ungarn ; Polen ; Russland ; Slowakei

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Earle, John S. ; Sakova, Zuzana
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 1999

Weitere Informationen

• Handle: http://hdl.handle.net/10419/20913
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ