Abstract
In a sample of newly created French …firms, the impact of an entrepreneur’s education
on the …firm’s survival varies widely depending on his previous labor market situation.
While it is strongly positive for the overall population, it is much weaker or insignificant for entrepreneurs who were previously unemployed or poorly matched. Our theoretical entrepreneurship model shows that these differences may be attributed to differences in unobserved human capital for better educated entrepreneurs across different initial states in the labor market. Empirical results are consistent with the theory if employers have limited information about potential entrepreneurs’' human capital.
on the …firm’s survival varies widely depending on his previous labor market situation.
While it is strongly positive for the overall population, it is much weaker or insignificant for entrepreneurs who were previously unemployed or poorly matched. Our theoretical entrepreneurship model shows that these differences may be attributed to differences in unobserved human capital for better educated entrepreneurs across different initial states in the labor market. Empirical results are consistent with the theory if employers have limited information about potential entrepreneurs’' human capital.
Original language | English |
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Place of Publication | Paris |
Publisher | Travail, Emploi et Politiques Publiques |
Number of pages | 54 |
Publication status | Published - 2010 |
Publication series
Name | TEPP Working Papers |
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Publisher | TEPP |
No. | 2010-9 |
ISSN (Print) | 2110-5472 |
Keywords
- entrepreneurial choice
- labour market
- Human capital
- firm survival