TY - JOUR
T1 - Cash constraints and business start-ups
T2 - Deutschmarks versus dollars
AU - Holtz-Eakin, Douglas
AU - Rosen, Harvey S.
N1 - Funding Information:
∗We are grateful to Donald Bruce and Rebecca Porcello for superb research assistance and to Esther Gray for preparing the manuscript. The National Science Foundation, The Center for Policy Research, and Princeton’s Center for Economic Policy Studies provided support. We thank Dan Black, Patrick Bolton, Donald Bruce, Stacy Dickert-Conlin, William Gentry, Friedhelm Pfeiffer, James Poterba, and members of Princeton’s Public Finance Working Group for useful suggestions.
PY - 2005
Y1 - 2005
N2 - In this paper we analyze microdata to explore differences in the rates at which American and German workers leave their salaried jobs to become self-employed. We document that the rate of self-employment is lower in Germany than in the United States, and the rate of transition from wage-earning to self-employment is lower as well. Our results suggest that German workers face liquidity constraints that are more severe than those of their American counterparts and an environment that discourages transitions to self-employment. The difference in transition rates cannot be attributed to observable differences between German and American workers.
AB - In this paper we analyze microdata to explore differences in the rates at which American and German workers leave their salaried jobs to become self-employed. We document that the rate of self-employment is lower in Germany than in the United States, and the rate of transition from wage-earning to self-employment is lower as well. Our results suggest that German workers face liquidity constraints that are more severe than those of their American counterparts and an environment that discourages transitions to self-employment. The difference in transition rates cannot be attributed to observable differences between German and American workers.
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U2 - 10.2202/1538-0645.1029
DO - 10.2202/1538-0645.1029
M3 - Article
AN - SCOPUS:21244441533
SN - 1538-0645
VL - 4
JO - Contributions to Economic Analysis and Policy
JF - Contributions to Economic Analysis and Policy
IS - 1
ER -