Some Empirical Aspects of Entrepreneurship

Evans, David S.; Leighton, Linda S.

doi:10.1007/978-94-015-7854-7_6

Cited by 1,153 publications

(1,391 citation statements)

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“…This would be consistent with the mainstream firm dynamics literature that suggests that, while entrepreneurship is a desirable destination, young firms, which, ceteris paribus are more likely to be opened by young workers, have very high failure rates (see Jovanovic 1982 andLeighton 1989). Both patterns might, alternatively, be driven by separated older workers being progressively unable to find formal sector jobs.…”

Section: Transitions Into Employment By Age Education and Gendersupporting

confidence: 83%

“…2 At the risk of excessive stylization, one view with conceptual roots in Harris and Todaro (1970) equates the informal sector with underemployment or disguised unemployment-the disadvantaged sector of a market segmented by rigidities in the "formal" or covered sector of the economy. 3 However, another emerging view keys more off the mainstream self-employment literature in the style of Lucas (1978), Jovanovic (1982) and Evans and Leighton (1989), and argues that, as a first approximation, entry into the sector should be seen as a vocational choice in line with the worker's comparative advantage, to work in a more entrepreneurial sector, albeit one with irregular relations with the state. 4 We show that nature of the aggregate Markov-based statistics as reduced forms capturing both comparative advantage considerations as well as barriers to mobility makes drawing inferences from the observed patterns difficult.…”

Section: Introductionmentioning

confidence: 99%

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Comparative analysis of labor market dynamics using Markov processes: An application to informality

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in Comparative Analysis of Labor Market Dynamics Using Markov Processes: An Application to Informality Mariano Bosch William Maloney D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT Comparative Analysis of Labor Market Dynamics Using Markov Processes: An Application to InformalityThis paper discusses a set of statistics for examining and comparing labor market dynamics based on the estimation of continuous time Markov transition processes. It then uses these to establish stylized facts about dynamic patterns of movement using panel data from Argentina, Brazil and Mexico. The estimates suggest broad commonalities among the three countries, and establish numerous common patterns of worker mobility among sectors of work and inactivity. As such, we offer some of the first comparative work on labor dynamics. The paper then particularly focuses on the role of the informal sector, both for its intrinsic interest, and as a case study illustrating the strengths and limits of the tools. The results suggest that a substantial part of the informal sector, particularly the self-employed, corresponds to voluntary entry although informal salaried work may correspond more closely to the standard queuing view, especially for younger workers.JEL Classification: C14, J21, J24, J64, O17

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Section: Transitions Into Employment By Age Education and Gendersupporting

confidence: 83%

Section: Introductionmentioning

confidence: 99%

Comparative analysis of labor market dynamics using Markov processes: An application to informality

2010

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“…Evans and Jovanovic (1989) show that, due to capital constraints, there is a positive relationship between the probability of becoming self-employed and the assets of the entrepreneur. Similarly, Evans and Leighton (1989) show that the exploitation of entrepreneurial opportunities is more common when people have greater financial capital. We capture some aspects of the individual specific financial constraints by using a dummy variable, which indicates if a potential entrepreneur was providing funds for business financing in the past.…”

Section: Control Variables: Characteristics Of Entrepreneurs and Econmentioning

confidence: 98%

Institutions, Finance and the Level of Development: the Impact on Entrepreneurship in Transition

Aidis

Estrin

Mickiewicz

2010

REI

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Abstract:We investigate the impact of institutions on entrepreneurial entry, based on a large cross-country sample, combining working age population data generated by the GEM project with macro level indicators. Our four key findings indicate that: (a) institutional obstacles to entrepreneurship have different impact in rich countries compared to poor countries; (b) institutional obstacles have a stronger impact on 'opportunity entrepreneurship' than on 'necessity entrepreneurship'; (c) two institutional indicators -property right protection and access to finance -appear to have a dominant impact on entrepreneurship; (d) institutions have a long term impact. More than ten years after the Soviet system imploded in Central and Eastern Europe, these countries still experience significantly lower levels of entrepreneurship than economies coming from different legal traditions.JEL classification: L26, P14, P51, P37

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“…Research in the 1970s found that small firms contribute a disproportionate amount of new jobs (Evans et al 1989c). Similarly, Haitwanger, Jarmin and Miranda (Haltiwanger et al 2008) found that start-ups and young businesses were critical for job creation and contributed significantly to a country's net growth.…”

Section: Introductionmentioning

confidence: 99%

The Formation of New Firms: An Ordered Probit Model Approach for Latin American and Caribbean Countries

Vélez

Robledo

2014

SSRN Journal

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The purpose of this paper is to identify the factors that affect the creation of new firms in Latin American countries. We take into consideration economic, political, social and technological factors which should also help governments realize the areas that we found to have the greatest impact. The study relies on data from international organizations from which we construct an Ordered Probit model. The results indicate that credit and government effectiveness enhance the probability of generating new business but it depended of business density.

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Some Empirical Aspects of Entrepreneurship

Cited by 1,153 publications

References 23 publications

Comparative analysis of labor market dynamics using Markov processes: An application to informality

Comparative analysis of labor market dynamics using Markov processes: An application to informality

Institutions, Finance and the Level of Development: the Impact on Entrepreneurship in Transition

The Formation of New Firms: An Ordered Probit Model Approach for Latin American and Caribbean Countries

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