Difference between revisions of "Blanchflower Oswald (1998) - What Makes An Entrepreneur"

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  • Blanchflower, David and Andrew Oswald (1998), "What Makes an Entrepreneur?", Journal of Labor Economics, 16, pp. 26-60. pdf


This article uses various micro data sets to study entrepreneurship. Consistent with the existence of capital constraints on potential entrepreneurs, the estimates imply that the probability of self-employment depends positively upon whether the individual ever received an inheritance or gift. When directly questioned in interview surveys, potential entrepreneurs say that raising capital is their principal problem. Consistent with our theoretical model's predictions, the selfemployed report higher levels of job and life satisfaction than employees. Childhood psychological test scores, however, are not strongly correlated with later self-employment.