Financial development, entrepreneurship and job satisfaction
Pre-print, Working paper: This paper shows that utility differences between the self-employed and the employees increase with financial development. This effect is not explained by increased profits but by an increased value of non- monetary benefits, in particular job independence. We interpret these findings by building a simple occupational choice model in which financial constraints may impede firms' creation and depress labor demand, thereby pushing some individuals into self-employment for lack of salaried jobs. In this setting, financial development favors a better matching between individual motivation and occupation, thereby increasing entrepreneurial utility despite increasing competition and so reducing profits.
Keywords JEL
Keywords
- Financial development
- Entrepreneurship
- Job satisfaction
Internal reference
- PSE Working Papers n°2008-59
URL of the HAL notice
Version
- 1