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Entrepreneurship in India: the question of occupational transition

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  • Erik Monsen
  • Prashanth Mahagaonkar
  • Christian Dienes

Abstract

Occupational transition from salaried to self-employment is an important issue in developed economies, but is even more critical in emerging economies, as individuals' occupational choices can drive economic development. Using data on 3637 individuals from India, we examine the effect of regional factors on actual and intended transition. We find that self-employment and unemployment rates decrease actual and intended transition, and the effects are at least four times greater than that of individual-level factors. In addition, we find that urban versus rural location moderates the effects of income ratios and state GDP, with the effects being greater in rural locations.
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Suggested Citation

  • Erik Monsen & Prashanth Mahagaonkar & Christian Dienes, 2012. "Entrepreneurship in India: the question of occupational transition," Small Business Economics, Springer, vol. 39(2), pages 359-382, September.
    • Handle: RePEc:kap:sbusec:v:39:y:2012:i:2:p:359-382
    DOI: 10.1007/s11187-011-9316-9
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      • Alexander Chepurenko, 2015. "Entrepreneurship Theory: New Challenges and Future Prospects," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 9(2 (eng)), pages 44-57.
    5. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.
    6. Robert Lee & Eleanor Shaw, 2016. "Bourdieu’s non-material forms of capital: Implications for start-up policy," Environment and Planning C, , vol. 34(8), pages 1734-1758, December.
    7. Rink, Ute & Walle, Yabibal M. & Klasen, Stephan, 2021. "The financial literacy gender gap and the role of culture," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 117-134.
    8. Maria Lúcia Pato & Aurora A.C. Teixeira, 2013. "Twenty years of rural entrepreneurship: a bibliometric survey," FEP Working Papers 516, Universidade do Porto, Faculdade de Economia do Porto.
    9. Sri Krishna Sudheer Patoju & Sasmita Swain, 2023. "Entrepreneurial Value Creation by Rural Enterprises: A Process Model," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 32(3), pages 590-617, November.
    10. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    11. Francesco Quatraro & Marco Vivarelli, 2013. "Entry and Post-Entry Dynamics in Developing Countries," GREDEG Working Papers 2013-20, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    12. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    13. Robert P. Garrett & Chao Miao & Shanshan Qian & Tae Jun Bae, 2017. "Entrepreneurial spawning and knowledge-based perspective: a meta-analysis," Small Business Economics, Springer, vol. 49(2), pages 355-378, August.

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    More about this item

    Keywords

    Occupational transition; Self-employment; Emerging economies; Regional effects; J24; J62; L26; O12; O18; O53;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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