Journal of Labor Economics Vol. 18 No. 2 2000
Financial Capital, Human Capital, and the Transition to Self‐Employment: Evidence from Intergenerational Links
Abstract
We use data from the National Longitudinal Surveys to investigate the relative importance of family financial and human capital in the transition into self-employment. Specifically, we estimate the impacts of individual's own wealth and human capital and parental wealth and self-employment experience on the probability that an individual transits from wage-and-salary to self-employment. We find young men's own financial assets exert a statistically significant but quantitatively modest effect on the transition. In contrast, the parents' capital exerts a large influence. Parents' strongest effect runs, not through financial means, but rather through their own self-employment experience and business success.
- DOI
- 10.1086/209959
- Volume
- 18
- Issue
- 2
- Pages
- 282-305
- Language
- en
- Sources
- crossref openalex