nep-ent New Economics Papers
on Entrepreneurship
Issue of 2022‒06‒27
nine papers chosen by
Marcus Dejardin
Université de Namur

  1. Pandemic Depression: COVID-19 and the Mental Health of the Self-Employed By Marco Caliendo; Daniel Graeber; Alexander S. Kritikos; Johannes Seebauer
  2. Are entrepreneurs more upwardly mobile? By Matthew J. Lindquist; Theodor Vladasel
  3. Entrepreneurship as the safe option: Evidence from India By Borchhardt, Geoffrey; Sorenson, Olav
  4. What constitutes a machine-learning-driven business model? A taxonomy of B2B start-ups with machine learning at their core By Vetter, Oliver A.; Hoffmann, Felix Sebastian; Pumplun, Luisa; Buxmann, Peter
  5. Survival of the fittest: Tourism Exposure and Firm Survival By Hugo Reis; Paulo M.M. Rodrigues; Filipe B. Caires
  7. Productivity Implications of R&D, Innovation, and Capital Accumulation for Incumbents and Entrants: Perspectives from a Catching-up Economy By Jaan Masso; Amaresh K Tiwari
  8. Job Satisfaction, Structure of Working Environment and Firm Size By Aysit Tansel; Saziye Gazioglu
  9. A Key Work in the Origin of the Theory of the Entrepreneur in the Spanish Enlightenment: An Unknown Manuscript of the Cantillon's Essai By Jesus Astigarraga; Juan Zabalza

  1. By: Marco Caliendo; Daniel Graeber; Alexander S. Kritikos; Johannes Seebauer
    Abstract: We investigate the effect of the COVID-19 pandemic on self-employed people’s mental health. Using representative longitudinal survey data from Germany, we reveal differential effects by gender: whereas self-employed women experienced a substantial deterioration in their mental health, self-employed men displayed no significant changes up to early 2021. Financial losses are important in explaining these differences. In addition, we find larger mental health responses among self-employed women who were directly affected by government-imposed restrictions and bore an increased childcare burden due to school and daycare closures. We also find that self-employed individuals who are more resilient coped better with the crisis.
    Keywords: Self-employment, COVID-19, mental health, gender, representative
    JEL: L26 D31 I14 I18 J16
    Date: 2022
  2. By: Matthew J. Lindquist; Theodor Vladasel
    Abstract: Entrepreneurship is often hailed as a path to upward intergenerational mobility, but few studies have explicitly tested this belief. We study intergenerational income rank mobility among entrepreneurs and employees in Sweden using high-quality measures of lifetime income for 215,000 father-son pairs. Incorporated entrepreneurs are more upwardly mobile than wage earners; this result is driven by selection and not by the causal impact of entrepreneurship on upward intergenerational mobility. By contrast, unincorporated entrepreneurs are more downwardly mobile, a result explained by selection, income underreporting, and lower returns to skills and education.
    Keywords: Entrepreneurship, incorporation, intergenerational mobility, lifetime income, upward mobility
    JEL: L26 J24 J62
    Date: 2022–06
  3. By: Borchhardt, Geoffrey; Sorenson, Olav
    Abstract: We examine the returns to entrepreneurship in India. We find that entrepreneurs, on average, earn more than they would expect in paid employment. Except among the most highly educated, that positive effect holds for every subgroup of entrepreneurs, from the growth-oriented to the self-employed offering personal services. Further analysis reveals that this positive effect appears to stem almost entirely from the fact that entrepreneurs in India have more stable income streams, they have fewer months with no income. Entrepreneurship may therefore represent a safer option for these individuals.
    Date: 2022–05–19
  4. By: Vetter, Oliver A.; Hoffmann, Felix Sebastian; Pumplun, Luisa; Buxmann, Peter
    Date: 2022–06–18
  5. By: Hugo Reis; Paulo M.M. Rodrigues; Filipe B. Caires
    Abstract: In this paper, we estimate a discrete-time hazard model to study firm survival in the Portuguese Tourism sector. This sector has experienced a remarkable performance over the last decades. When compared to other sectors, tourism firms are more likely to exit: (i) if they are young (less than 10 years of existence); and (ii) if they belong to the lower tail of the firm distribution (i.e. belong to the group of worse performers). Within tourism related sectors, we find that firms whose activities are offered mostly to tourists, such as travel agencies and hotels, are always among the best performers in terms of survival. Moreover, despite of Tourism being one of the most volatile sectors in periods of high uncertainty, results show a higher survival resilience among established tourism associated firms.
    JEL: C23 C55 L25 L83
    Date: 2022
  6. By: Abraham Assefa; Darya Lapitskaya; Lenno Uusküla
    Abstract: The paper studies the effects of technology shocks on the creation and destruction of firms. Using US data and a VAR model the paper finds Schumpeterian creative destruction for investment-specific technology shocks. A positive investment-specific technology shock increases the number of firms opening, but also leads to a higher number of firms closing. In contrast, labour-neutral technology shocks also benefit old firms. An increase in overall productivity leads to an increase in the number of new firms and a drop in the number of failures. Both margins contribute to an increase in the number of firms in the economy. A medium-scale DSGE model with endogenous entry and exit that is that is augmented with additional features is able to capture these stylised facts.
    Keywords: VAR, DSGE, Firm dynamics, Productivity, Firm turnover, Technology shocks, Investment specific technology shocks
    Date: 2022
  7. By: Jaan Masso; Amaresh K Tiwari
    Abstract: We study the productivity implications of R&D, capital accumulation, and innovation output for entrants and incumbents in Estonia. First, in contrast to developed economies, a small percentage of firm engage in formal R&D, but a much larger percentage innovate. Second, while we find no difference in the R&D elasticity of productivity for the entrants and incumbents, the impact of innovation output - many of which are a result of 'doing, using and interacting' (DUI) mode of innovation - is found to be higher for the entrants. Entrants who innovate are 21% to 30% more productive than entrants who do not; the corresponding figures for the incumbents are 10% to 13%. Third, despite the adverse sectoral composition typical of catching-up economies, Estonian incumbents, who are the primary carriers of 'scientific and technologically-based innovative' (STI) activities, are comparable to their counterparts in developed economies in translating STI activities into productivity gains. Fourth, while embodied technological change through capital accumulation is found to be more effective in generating productivity growth than R&D, the effectiveness is higher for firms engaging in R&D. Finally, our results suggest that certain policy recommendations for spurring productivity growth in technologically advanced economies may not be applicable for catching-up economies.
    Date: 2022–05
  8. By: Aysit Tansel (Department of Economics Middle East Technical University, IZA, ERF Cario); Saziye Gazioglu (Department of Economics and Instituted of Applied Mathematics (IAM) Middle East Technical University, Department of Economics University of Aberdeen)
    Abstract: Employees’ wellbeing is important to the firms. Analysis of job satisfaction may give insight into various aspect of labor market behavior, such as worker productivity, absenteeism and job turn over. Little empirical work has been done on the relationship between structure of working environment and job satisfaction. This paper investigates the relationship between working environment, firm size and worker job satisfaction. We use a unique data of 28,240 British employees, Workplace Employee Relations Survey. In this data set the employee questionnaire is matched with the employer questionnaire. Four measures of job satisfaction considered are satisfaction with influence over job, satisfaction with amount of pay, satisfaction with sense of achievement and satisfaction with respect from supervisors. They are all negatively related to the firm size implying lower levels of job satisfaction in larger firms. The firm size in return is negatively related to the degree of flexibility in the working environment. The small firms have more flexible work environments. We further find that, contrary to the previous results lower levels of job satisfaction in larger firms can not necessarily be attributed to the inflexibility in their structure of working environment.
    Keywords: Job Satisfactions, Firm Size, Working Environment, Linked Employer-Employee data, Britain.
    JEL: J21 J28 J29 J81
    Date: 2022–06
  9. By: Jesus Astigarraga (Universidad de Zaragoza, Departamento de Economia Aplicada); Juan Zabalza (Universidad de Alicante, Departamento de Analisis Economico Aplicado)
    Abstract: The Essai sur la nature du commerce en général (1755) by Richard Cantillon is a major treatise on the "science of commerce" that emerged in the 18th century in Europe. Despite not having been translated into Spanish during that century, the treatise was well known in Spain, particularly during the last third of the century. However, the recent finding of a manuscript containing an unabridged translation of Cantillon's emblematic book obliges us to turn our attention to Cantillon's Essai's fortune in Spain. This work provides a comprehensive interpretation of this manuscript and its possible date and authorship. The innovative nature of the translation is underlined by an exhaustive displaying, for the first time in Spain, of the theory of the entrepreneur, of which the Irish economist was a true pioneer.
    Keywords: Intellectual History, International Circulation of Economic Ideas, Spanish Enlightenment, Translations of Political Economy, Theory of Entrepreneur
    JEL: B10 B30
    Date: 2022–05

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