Personal Wealth and Self-Employment

64 Pages Posted: 2 Apr 2020

See all articles by Aymeric Bellon

Aymeric Bellon

University of Pennsylvania - The Wharton School

J. Anthony Cookson

University of Colorado at Boulder - Leeds School of Business

Erik Gilje

University of Pennsylvania - The Wharton School

Rawley Heimer

Boston College - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: February 29, 2020

Abstract

We examine how wealth windfalls affect self-employment decisions using data on cash payments from claims on Texas shale drilling to people throughout the United States. Individuals who receive large wealth shocks (greater than $50,000) have 51% higher self-employment rates. The increase in self-employment rates is driven by individuals who lengthen existing self- employment spells, and not by individuals who leave regular employment for self-employment. Moreover, the effect of wealth reverts for individuals whose payments run out. Rather than alleviating a financial constraint, our evidence suggests that unrestricted cash windfalls affect self-employment decisions primarily through self-employment’s non-pecuniary benefits.

Keywords: self-employment; entrepreneurship; personal wealth; oil and gas; mineral rights

JEL Classification: L26, G51, G39

Suggested Citation

Bellon, Aymeric and Cookson, J. Anthony and Gilje, Erik and Heimer, Rawley, Personal Wealth and Self-Employment (February 29, 2020). Available at SSRN: https://ssrn.com/abstract=3551576 or http://dx.doi.org/10.2139/ssrn.3551576

Aymeric Bellon

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

J. Anthony Cookson (Contact Author)

University of Colorado at Boulder - Leeds School of Business ( email )

Boulder, CO 80309-0419
United States

Erik Gilje

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Rawley Heimer

Boston College - Department of Finance ( email )

Carroll School of Management
140 Commonwealth Avenue
Chestnut Hill, MA 02467-3808
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
126
Abstract Views
1,065
rank
246,615
PlumX Metrics