The Imprint of Labor Markets on Entrepreneurial Performance

43 Pages Posted: 9 Aug 2017

See all articles by Seok-Woo Kwon

Seok-Woo Kwon

University of Calgary - Haskayne School of Business

Martin Ruef

Duke Innovation & Entrepreneurship Initiative; Duke University, Dept. of Sociology

Date Written: August 8, 2017

Abstract

Using the 1979-2010 waves of the National Longitudinal Survey of Youth, our study tracks the earnings of individual entrepreneurs from the beginning of their entrepreneurial careers, examining the effects of labor markets on their earnings trajectory. Results show that apart from self-selection, labor markets impose a penalty on the initial earnings of entrepreneurs who start a business in adverse economic conditions, a disadvantage that persist for up to a decade. We also identify two factors expected to alleviate the imprinting effect of labor markets: migration outside the imprinting environment and serial entrepreneurship.

Keywords: Imprinting, Income Trajectory, Self-Employment, Resource Scarcity

JEL Classification: J61, J62, L26

Suggested Citation

Kwon, Seok-Woo and Ruef, Martin, The Imprint of Labor Markets on Entrepreneurial Performance (August 8, 2017). Available at SSRN: https://ssrn.com/abstract=3015449 or http://dx.doi.org/10.2139/ssrn.3015449

Seok-Woo Kwon

University of Calgary - Haskayne School of Business ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

Martin Ruef (Contact Author)

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

Duke University, Dept. of Sociology ( email )

United States

HOME PAGE: http://https://sociology.duke.edu/people/martin-ruef

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