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• W2530072011 abstract "Small business owners and others in self-employment have the option to transition to paid work. If there is initial uncertainty about entrepreneurial earnings, this option increases the expected lifetime value of self-employment relative to pay in a single year. This paper first documents that moves between paid work and self-employment are common and consistent with experimentation to learn about earnings. This pattern motivates estimating the expected returns to entrepreneurship within a dynamic lifecycle model that allows for non-random selection and gradual learning about the entrepreneurial earnings process. The model accurately fits entry patterns into self-employment by age. The option value of returning to paid work is found to constitute a substantial portion of the monetary value of entrepreneurship. The model is then used to evaluate policies that change incentives for entry into self-employment." @default.
• W2530072011 created "2016-10-21" @default.
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• W2530072011 date "2017-02-01" @default.
• W2530072011 modified "2023-10-13" @default.
• W2530072011 title "Self-Employment Dynamics and the Returns to Entrepreneurship" @default.
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• W2530072011 doi "https://doi.org/10.3386/w23168" @default.
• W2530072011 hasPublicationYear "2017" @default.
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