A Longitudinal Analysis of Young Entrepreneurs in Australia and the United States

45 Pages Posted: 27 Dec 2006 Last revised: 29 Sep 2010

See all articles by David G. Blanchflower

David G. Blanchflower

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics; Peter G. Peterson Institute for International Economics

Bruce D. Meyer

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies; National Bureau of Economic Research (NBER)

Date Written: June 1991

Abstract

This paper examines the pattern of self-employment in Australia and the United States. We particularly focus on the movement of young people in and out of self-employment using comparable longitudinal data from the two countries. We find that the forces that influence whether a person becomes self-employed are broadly similar: in both countries skilled manual workers, males and older workers were particularly likely to move to self-employment. We also find that previous firm size, previous union status and previous earnings are important determinants of transitions to self-employment. The main difference we observe is that additional years of schooling had a positive impact on the probability of being self-employed in the US but were not a significant influence in Australia. However, the factors influencing the probability of leaving self-employment are different across the two countries. The only similarity is that in both countries younger individuals are more likely to leave.

Suggested Citation

Blanchflower, David G. and Meyer, Bruce D., A Longitudinal Analysis of Young Entrepreneurs in Australia and the United States (June 1991). NBER Working Paper No. w3746. Available at SSRN: https://ssrn.com/abstract=473925

David G. Blanchflower (Contact Author)

Dartmouth College - Department of Economics ( email )

Hanover, NH 03755
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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Peter G. Peterson Institute for International Economics ( email )

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Bruce D. Meyer

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )

1155 East 60th Street
Chicago, IL 60637
United States
(773) 702-2712 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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