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From unemployed to entrepreneur: The role of the absolute bequest motive

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  • Faria, João Ricardo
  • Wu, Zhongmin

Abstract

Using the British Household Panel Survey, this paper finds that inheritance has a concave effect on the hours worked by male entrepreneurs. Receiving an inheritance increases the labor supply of unemployed male entrepreneurs; however this effect becomes smaller for higher inheritances.

Suggested Citation

  • Faria, João Ricardo & Wu, Zhongmin, 2012. "From unemployed to entrepreneur: The role of the absolute bequest motive," Economics Letters, Elsevier, vol. 114(1), pages 120-123.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:1:p:120-123
    DOI: 10.1016/j.econlet.2011.09.019
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    References listed on IDEAS

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    1. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "The Carnegie Conjecture: Some Empirical Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 413-435.
    2. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1994. "Entrepreneurial Decisions and Liquidity Constraints," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 334-347, Summer.
    3. David Joulfaian & Mark O. Wilhelm, 1994. "Inheritance and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 1205-1234.
    4. Jones, Larry E. & Manuelli, Rodolfo E., 1992. "Finite lifetimes and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 171-197, December.
    5. Araujo, Jorge Thompson & Martins, Marco A. C., 1999. "Economic growth with finite lifetimes," Economics Letters, Elsevier, vol. 62(3), pages 377-381, March.
    6. Amnon Levy & João R. Faria (ed.), 2002. "Economic Growth, Inequality and Migration," Books, Edward Elgar Publishing, number 1647.
    7. Cipriani, Giam Pietro, 2000. "Growth with unintended bequests," Economics Letters, Elsevier, vol. 68(1), pages 51-53, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2021. "The distribution of wealth in Spain and the USA: the role of socioeconomic factors," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(3), pages 389-421, September.
    2. Elinder Mikael & Erixson Oscar & Ohlsson Henry, 2012. "The Impact of Inheritances on Heirs' Labor and Capital Income," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-37, December.
    3. João Ricardo Faria & Juan Carlos Cuestas & Luis Gil-Alana & Estefania Mourelle, 2021. "Self-employment by gender in the EU: convergence and clusters," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 717-741, August.
    4. Andrew Atherton & João R. Faria & Dongxu Wu & Zhongmin Wu, 2015. "Human Capital, Entrepreneurial Entry and Survival," NBS Discussion Papers in Economics 2015/01, Economics, Nottingham Business School, Nottingham Trent University.
    5. Dongxu Wu & Zhongmin Wu, 2015. "Intergenerational links, gender differences, and determinants of self-employment," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(3), pages 400-414, August.
    6. Andreas Eder, 2016. "The impact of inheritances on the retirement behavior of older Europeans," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 299-331, May.

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    More about this item

    Keywords

    Entrepreneurship; Inheritance; Education;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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