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Middle-Class Entrepreneurs and Inadequate Prospects for Social Mobility through Entrepreneurship in Colombia

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  • Marcela Melendez
  • Paula Mejia

Abstract

This paper explores whether Colombia's middle class is a cradle of entrepreneurship that drives innovation and business growth and fosters social mobility. Microeconomic data are used to characterize entrepreneurs by income group and business characteristics. While entrepreneurs appear to enjoy more income mobility than the average worker, it is not clear whether this is true for middle-class entrepreneurs in particular or if it is a result of entrepreneurship. Nor is there evidence that middle-class entrepreneurs' activity boosts economic growth. Instead, the findings suggest that businesses run by these entrepreneurs are characterized by low productivity.

Suggested Citation

  • Marcela Melendez & Paula Mejia, 2014. "Middle-Class Entrepreneurs and Inadequate Prospects for Social Mobility through Entrepreneurship in Colombia," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(2), pages 279-305, November.
    • Handle: RePEc:ioe:cuadec:v:51:y:2014:i:2:p:279-305
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    References listed on IDEAS

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    More about this item

    Keywords

    Middle class; social mobility; entrepreneurship; survey data; Colombia;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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