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Entrepreneurship and Welfare

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  • Jagannadha Pawan Tamvada

Abstract

We examine returns to entrepreneurship using a standard measure of welfare, the per capita consumption expenditure. Using quantile regressions, we find welfare hierarchy in occupations. The results suggest that, across the welfare distribution, entrepreneurs who employ others have the high-test returns in terms of consumption, while those entrepreneurs who work for themselves, that is, self-employed individuals, have slightly lower returns than the salaried employees. However, self-employment entails higher returns than casual labour and an escape from poverty.

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  • Jagannadha Pawan Tamvada, 2009. "Entrepreneurship and Welfare," WIDER Working Paper Series RP2009-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2009-21
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    Cited by:

    1. Cornelius A. Rietveld & Jolanda Hessels & Peter van der Zwan, 2014. "The Stature of the Self-employed and its Premium," Tinbergen Institute Discussion Papers 14-109/VII, Tinbergen Institute.
    2. Jagannadha Pawan Tamvada & Mili Shrivastava & Tapas Kumar Mishra, 2022. "Education, social identity and self-employment over time: evidence from a developing country," Small Business Economics, Springer, vol. 59(4), pages 1449-1468, December.
    3. Olarewaju, Tolu I.A. & Mickiewicz, Tomasz & Pawan Tamvada, Jagannadha, 2019. "The returns to occupations: The role of minimum wage and gender in Nigeria," World Development Perspectives, Elsevier, vol. 13(C), pages 75-86.
    4. Song, Yunxing & Gong, Yuanyuan & Song, Yan & Chen, Xiaohui, 2024. "Exploring the impact of digital inclusive finance on consumption volatility: Insights from household entrepreneurship and income volatility," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. Doaa M. Salman, 2014. "The Impact of Economic Freedom on Entrepreneurs’ Activities and Economic Growth: New Evidence From Cross-Country Data," Working Papers 868, Economic Research Forum, revised Nov 2014.
    6. Martin Binder & Alex Coad, 2013. "Life satisfaction and self-employment: a matching approach," Small Business Economics, Springer, vol. 40(4), pages 1009-1033, May.
    7. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2014. "Who creates jobs in developing countries?," Small Business Economics, Springer, vol. 43(1), pages 75-99, June.
    8. Ana-Maria GRIGORE & Sorin-George TOMA, 2014. "Perceptions Of Entrepreneurship As A Career Path," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 153-165, November.
    9. Naudé, Wim, 2011. "Entrepreneurship is Not a Binding Constraint on Growth and Development in the Poorest Countries," World Development, Elsevier, vol. 39(1), pages 33-44, January.
    10. Naudé, Wim, 2011. "Entrepreneurship is Not a Binding Constraint on Growth and Development in the Poorest Countries," World Development, Elsevier, vol. 39(1), pages 33-44, January.
    11. Vial, Virginie & Hanoteau, Julien, 2015. "Returns to Micro-Entrepreneurship in an Emerging Economy: A Quantile Study of Entrepreneurial Indonesian Households’ Welfare," World Development, Elsevier, vol. 74(C), pages 142-157.
    12. Alex Coad & Jaganaddha Tamvada, 2012. "Firm growth and barriers to growth among small firms in India," Small Business Economics, Springer, vol. 39(2), pages 383-400, September.
    13. Rietveld, Cornelius A. & Hessels, Jolanda & van der Zwan, Peter, 2015. "The stature of the self-employed and its relation with earnings and satisfaction," Economics & Human Biology, Elsevier, vol. 17(C), pages 59-74.
    14. Isaac Marcelin & Daniel Brink & Wei Sun, 2021. "Firms' resilience to financial constraints: The role of trade credit," WIDER Working Paper Series wp-2021-78, World Institute for Development Economic Research (UNU-WIDER).
    15. Alex Coad & Kristian Nielsen & Bram Timmermans, 2017. "My first employee: an empirical investigation," Small Business Economics, Springer, vol. 48(1), pages 25-45, January.
    16. Kai Du & Allan O’Connor, 2018. "Entrepreneurship and advancing national level economic efficiency," Small Business Economics, Springer, vol. 50(1), pages 91-111, January.
    17. Rodriguez Torres, Omar, 2021. "Does entrepreneurship increase the chance of the poor?," MERIT Working Papers 2021-018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Hessels, Jolanda & Rietveld, Cornelius A. & van der Zwan, Peter, 2017. "Self-employment and work-related stress: The mediating role of job control and job demand," Journal of Business Venturing, Elsevier, vol. 32(2), pages 178-196.
    19. Antonio Lecuna, 2014. "High income inequality as a structural factor in entrepreneurial activity," Past Working Papers xx, Universidad del Desarrollo, School of Business and Economics, revised Dec 2014.
    20. Khurana, Indu & Tamvada, Jagannadha Pawan & Audretsch, David B., 2023. "The weaker sex? A tale of means and tails," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    21. Nong Zhu & Cecile Batisse, 2015. "Activité indépendante, inégalité et pauvreté des immigrants au Canada," CIRANO Working Papers 2015s-31, CIRANO.
    22. Boris Mrkajic & Samuele Murtinu & Vittoria G. Scalera, 2019. "Is green the new gold? Venture capital and green entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 929-950, April.

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    More about this item

    Keywords

    Agricultural labourers; Consumption; Employees; Entrepreneurship; Public welfare;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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