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Job Loss and Entrepreneurship

Sammendrag

We examine the impact of job loss on entrepreneurship behaviour. Our identification strat-egy relies on the use of mass layoffs caused by bankruptcies as indicators of exogenous displacement. Building on Norwegian register data, we find that working in a company which is going to close down due to bankruptcy in the near future raises the subsequent entrepreneur propensity by 155 % for men and 180 % for women, compared to working in a stable firm. These estimates are much larger than previously reported in the literature. Taking into account that many workers lose their jobs in the comparison group of stable firms also, we suggest that the full effects of displacement are even larger.

Om publikasjonen

Forfattere:

Røed, Knut and Jens Fredrik Skogstrøm

År:

2014

Tidsskrift:

Oxford Bulletin of Economics & Statistics

Serie:

Vitenskapelige tidskrift

JEL:

L26, J65, M13

Nøkkelord:

Entrepreneurship, Self-employment, Unemployment

Prosjekt:

6513 - Entrepreneurship and Gender in Norway - Entrepreneurship, Gender, and Social capital

Lenke:

[DOI] [PDF]