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When is your experience valuable? Occupation-industry transitions and self-employment success

Koster, Sierdjan and Andersson, Martin LU (2017) In Journal of Evolutionary Economics
Abstract

The literature on employee spinoffs has, for a long time, stressed the importance of industry-specific skills and experiences in explaining the success of new firms. We argue that employees also develop skills that are associated with their occupation within an industry, and that success as an entrepreneur, therefore, is also contingent on the relation between the entrepreneurs’ previous occupation and the industry in which they operate as self-employed. Using matched employer-employee data, we develop a measure, occupational spin-offs, that accounts for this relation. An occupational spin-off is defined as a start-up in the most common industry, given the previous occupation of the founder. We then show that entrepreneurs starting... (More)

The literature on employee spinoffs has, for a long time, stressed the importance of industry-specific skills and experiences in explaining the success of new firms. We argue that employees also develop skills that are associated with their occupation within an industry, and that success as an entrepreneur, therefore, is also contingent on the relation between the entrepreneurs’ previous occupation and the industry in which they operate as self-employed. Using matched employer-employee data, we develop a measure, occupational spin-offs, that accounts for this relation. An occupational spin-off is defined as a start-up in the most common industry, given the previous occupation of the founder. We then show that entrepreneurs starting occupational spinoffs enjoy above average income from self-employment and have longer spells as business owners.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Entrepreneurship, Experience, Human capital, Occupational choice, Self-employment, Skills, Spin-offs
in
Journal of Evolutionary Economics
pages
22 pages
publisher
Springer
external identifiers
  • scopus:85027839591
ISSN
0936-9937
DOI
10.1007/s00191-017-0528-2
language
English
LU publication?
yes
id
c961d488-14b4-4a7e-a0f7-fed237eb1a37
date added to LUP
2017-09-07 08:22:47
date last changed
2017-09-07 08:22:47
@article{c961d488-14b4-4a7e-a0f7-fed237eb1a37,
  abstract     = {<p>The literature on employee spinoffs has, for a long time, stressed the importance of industry-specific skills and experiences in explaining the success of new firms. We argue that employees also develop skills that are associated with their occupation within an industry, and that success as an entrepreneur, therefore, is also contingent on the relation between the entrepreneurs’ previous occupation and the industry in which they operate as self-employed. Using matched employer-employee data, we develop a measure, occupational spin-offs, that accounts for this relation. An occupational spin-off is defined as a start-up in the most common industry, given the previous occupation of the founder. We then show that entrepreneurs starting occupational spinoffs enjoy above average income from self-employment and have longer spells as business owners.</p>},
  author       = {Koster, Sierdjan and Andersson, Martin},
  issn         = {0936-9937},
  keyword      = {Entrepreneurship,Experience,Human capital,Occupational choice,Self-employment,Skills,Spin-offs},
  language     = {eng},
  month        = {08},
  pages        = {22},
  publisher    = {Springer},
  series       = {Journal of Evolutionary Economics},
  title        = {When is your experience valuable? Occupation-industry transitions and self-employment success},
  url          = {http://dx.doi.org/10.1007/s00191-017-0528-2},
  year         = {2017},
}