Individual Entrepreneurial Exit and Earnings in Subsequent Paid Employment

Individual Entrepreneurial Exit and Earnings in Subsequent Paid Employment

We study earnings of individuals who exit entrepreneurship for paid employment. We find mean (median) positive rewards from entrepreneurship in subsequent paid employment relative to matched employees. Rewards are higher for former entrepreneurs hired in highly innovative sectors. We also find that...

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Veröffentlicht in:Entrepreneurship theory and practice 2016-03, Vol.40 (2), p.401-420
Hauptverfasser: Luzzi, Alessandra, Sasson, Amir
Format: Artikel
Sprache:eng
Schlagworte:
Analysis
Businesspeople
Earnings
Economic aspects
Employment
Entrepreneurs
Entrepreneurship
Forecasts and trends
Market exit
Profit
Studies
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container_title Entrepreneurship theory and practice
container_volume 40
creator Luzzi, Alessandra
Sasson, Amir
description We study earnings of individuals who exit entrepreneurship for paid employment. We find mean (median) positive rewards from entrepreneurship in subsequent paid employment relative to matched employees. Rewards are higher for former entrepreneurs hired in highly innovative sectors. We also find that the performance of the exited firm is a strong predictor of the earnings premium for former entrepreneurs when the firm performed well, while we do not find median discounts for entrepreneurs exiting low performing firms. We use registry data that encompass the population of firms and individuals in the Norwegian economy.
doi_str_mv 10.1111/etap.12225
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subjects Analysis
Businesspeople
Earnings
Economic aspects
Employment
Entrepreneurs
Entrepreneurship
Forecasts and trends
Market exit
Profit
Studies
title Individual Entrepreneurial Exit and Earnings in Subsequent Paid Employment
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