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When is your experience valuable?: Occupation-industry transitions and self-employment success
University of Groningen, NLD.
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2017 (English)In: Journal of evolutionary economics, ISSN 0936-9937, E-ISSN 1432-1386, 1-22 p.Article in journal (Refereed) Epub ahead of print
Abstract [en]

The literature on employee spinoffs has, for a long time, stressed the importance of industry-specific skills and experiences in explaining the success of new firms. We argue that employees also develop skills that are associated with their occupation within an industry, and that success as an entrepreneur, therefore, is also contingent on the relation between the entrepreneurs’ previous occupation and the industry in which they operate as self-employed. Using matched employer-employee data, we develop a measure, occupational spin-offs, that accounts for this relation. An occupational spin-off is defined as a start-up in the most common industry, given the previous occupation of the founder. We then show that entrepreneurs starting occupational spinoffs enjoy above average income from self-employment and have longer spells as business owners. © 2017 The Author(s)

Place, publisher, year, edition, pages
Springer New York LLC , 2017. 1-22 p.
Keyword [en]
Entrepreneurship, Experience, Human capital, Occupational choice, Self-employment, Skills, Spin-offs
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:bth-15094DOI: 10.1007/s00191-017-0528-2Scopus ID: 2-s2.0-85027839591OAI: oai:DiVA.org:bth-15094DiVA: diva2:1137797
Available from: 2017-09-01 Created: 2017-09-01 Last updated: 2017-09-01Bibliographically approved

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