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PublicationWorking paper

Ratio Working Paper No. 315: Habitual Entrepreneurs in the Making: How Labour Market Rigidity and Employment Affects Entrepreneurial Re-entry

Abstract

We investigate the impact of country-level labour market regulations on the re-entry decision of experienced entrepreneurs, whereby they become habitual entrepreneurs. Multilevel logit models on entry decisions among 15,709 individuals in 29 European countries show that labour market regulations have a positive influence on the decision to re-enter into entrepreneurship. This positive impact is stronger among individuals holding wage jobs at the time of re-entry compared to those that do not. Our results indicate that novice and habitual entrepreneurs may respond very differently to labour market rigidity. We discuss and provide tentative explanations for these differences, and outline potential policy implications.

Wennberg, K., Fu, K. & Larsson, A-S. (2018). Habitual Entrepreneurs in the Making: How Labour Market Rigidity and Employment Affects Entrepreneurial Re-entry. (Ratio Working Paper No. 315)

Details

Author: Wennberg, K., Fu, K. & Larsson, A-S.
Publication year: 2018
Published in: Ratio Working Paper

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Professor
Karl Wennberg
+46705105366karl.wennberg@ratio.se

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Seeking opportunity or socio-economic status? Housing and school choice in Sweden

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Residential choices and school choices are intimately connected in school systems where school admission relies on proximity rules. In countries with universal school choice systems, however, it remains an open question whether families’ residential mobility is tied to the choice of their children’s school, and with what consequences. Using administrative data on all children approaching primary-school age in Sweden, we study to what extent families’ financial and socio-economic background affects mobility between neighbourhoods and the characteristics of schools chosen by moving families. Our findings show that families do utilise the housing market as an instrument for school choice over the year preceding their firstborn child starting school. However, while families who move do ‘climb the social ladder’ by moving to neighbourhoods with more households of higher socio-economic status, their chosen schools do not appear to be of higher academic quality compared to those their children would otherwise have attended.

Read the article here.