Social Capital and the Uncertainty Reduction of Self-Employment

Blumberg, Boris F.; Pfann, Gerard A.

doi:10.2139/ssrn.270796

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Social Capital and the Uncertainty Reduction of Self-Employment

44 Pages Posted: 19 Jun 2001

See all articles by Boris F. Blumberg

Boris F. Blumberg

Maastricht University - Business Investment Research Center (BIRC)

Gerard A. Pfann

Maastricht University; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Date Written: June 2001

Abstract

We study the self-employed decision and its relation to human and social capital. Human capital is necessary to acquire skills. Social capital dampens the effects of uncertainty about future income. Our data set consists of 1339 respondents from the same age group, who were interviewed three times in life in 1957, 1983 and 1993. The self-employment probability equals 155 and peaks between ages 24 and 26. Duration analysis shows that social capital is the most important resource for self-employment.

Keywords: Self-Employment, Social Capital, Human Capital, Event History

JEL Classification: J23

Suggested Citation: Suggested Citation

Blumberg, Boris F. and Pfann, Gerard Antonie, Social Capital and the Uncertainty Reduction of Self-Employment (June 2001). Available at SSRN: https://ssrn.com/abstract=270796 or http://dx.doi.org/10.2139/ssrn.270796