From employee to entrepreneur: The role of unemployment risk

IF 10.4 1区 经济学 Q1 BUSINESS, FINANCE Journal of Financial Economics Pub Date : 2024-11-04 DOI:10.1016/j.jfineco.2024.103966
Ai Jun Hou , Sara Jonsson , Xiaoyang Li , Qinglin Ouyang
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Abstract

We use Swedish administrative data to study the role of unemployment risk in salaried employees’ decisions to become entrepreneurs. Using the 2001 relaxation of Sweden’s last-in-first-out (LIFO) dismissal rule as an exogenous shock to unemployment risk, we find that employees facing increased unemployment risk are more likely to become entrepreneurs. The effect is more pronounced for employees with longer tenure, as they were newly exposed to greater unemployment risk. When we track entrepreneurs’ income dynamics and the performance of their ventures, we find that entrepreneurs who used to face greater unemployment risk do not underperform compared to other entrepreneurs. Our results provide some of the first empirical evidence of how employees respond to increased unemployment risk.
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从雇员到企业家:失业风险的作用
我们利用瑞典的行政数据研究了失业风险在受薪雇员决定成为企业家中的作用。利用 2001 年瑞典放宽后进先出(LIFO)解雇规则作为失业风险的外生冲击,我们发现面临更大失业风险的雇员更有可能成为企业家。这种效应对任期较长的员工更为明显,因为他们新近面临的失业风险更大。当我们追踪创业者的收入动态及其创业企业的表现时,我们发现,与其他创业者相比,曾经面临更大失业风险的创业者并没有表现不佳。我们的研究结果首次提供了员工如何应对失业风险增加的经验证据。
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来源期刊
CiteScore
15.80
自引率
4.50%
发文量
192
审稿时长
37 days
期刊介绍: The Journal of Financial Economics provides a specialized forum for the publication of research in the area of financial economics and the theory of the firm, placing primary emphasis on the highest quality analytical, empirical, and clinical contributions in the following major areas: capital markets, financial institutions, corporate finance, corporate governance, and the economics of organizations.
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