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Geneses of labour market turnover: Job search and entrepreneurial aspirations on-the-job

Author

Listed:
  • Ari Hyytinen

    (Research Institute of the Finnish Economy ETLA)

  • Pekka Ilmakunnas

    (Helsinki School of Economics)

Abstract

In this paper we study the labour market behavior of employed individuals that have entrepreneurial aspirations in addition to aspirations to switch job. We analyze empirically these two “search processes” side-by-side and report three main findings: First, neither entrepreneurial aspirations nor aspirations to switch job are uncommon, but only few are engaged in both search processes. Second, the two processes are not alike: It is more difficult to empirically explain entrepreneurial aspirations than aspirations to switch job. Only few observable characteristics of the employed are related to both processes. Varied experience and job dissatisfaction are directly related to the probability of having entrepreneurial aspirations and aspirations to switch job, while job tenure is inversely related to them. Finally, the two processes are not conditionally independent. Unobservable heterogeneity common to many non-searchers drives this result.

Suggested Citation

  • Ari Hyytinen & Pekka Ilmakunnas, 2005. "Geneses of labour market turnover: Job search and entrepreneurial aspirations on-the-job," Labor and Demography 0501003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0501003
    Note: Type of Document - pdf; pages: 33
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0501/0501003.pdf
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    References listed on IDEAS

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    Cited by:

    1. Joanna Tyrowicz & Magdalena Smyk & Barbara Liberda, 2017. "Talent workers as entrepreneurs: a new approach to aspirational self-employment," Bank i Kredyt, Narodowy Bank Polski, vol. 48(6), pages 571-592.
    2. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.

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    More about this item

    Keywords

    entrepreneurship; job search; experience; job satisfaction;
    All these keywords.

    JEL classification:

    • J - Labor and Demographic Economics

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