Entrepreneurship and Employment Stability: Job Matching, Labour Market Value, and Personal Commitment

Virgilio Failla, Francesca Melillo, Toke Reichstein

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper challenges the conventional belief that entrepreneurship is an unstable career path. Using longitudinal matched employer–employee data from Denmark, the analysis reveals that a transition to entrepreneurship decreases individual's employment turnover tendency. Three explanations are identified and empirically explored: (i) job matching, (ii) labour market value, and (iii) personal commitment. Entrepreneurs appear to be more productive and thus better matched compared to wageworkers. However, they also appear to be locked in entrepreneurship because of their anticipated lower value in the labour market and because of their personal attachment to the venture. The counter-intuitive finding – entrepreneurship yields greater employment stability – only holds with respect to subsequent transitions to wagework and not for new venture founding. The results have implications for our understanding of entrepreneurial entry and labour market dynamics.
    This paper challenges the conventional belief that entrepreneurship is an unstable career path. Using longitudinal matched employer–employee data from Denmark, the analysis reveals that a transition to entrepreneurship decreases individual's employment turnover tendency. Three explanations are identified and empirically explored: (i) job matching, (ii) labour market value, and (iii) personal commitment. Entrepreneurs appear to be more productive and thus better matched compared to wageworkers. However, they also appear to be locked in entrepreneurship because of their anticipated lower value in the labour market and because of their personal attachment to the venture. The counter-intuitive finding – entrepreneurship yields greater employment stability – only holds with respect to subsequent transitions to wagework and not for new venture founding. The results have implications for our understanding of entrepreneurial entry and labour market dynamics.
    LanguageEnglish
    JournalJournal of Business Venturing
    Volume32
    Issue number2
    Pages162-177
    ISSN0883-9026
    DOIs
    StatePublished - Mar 2017

    Bibliographical note

    Published online: 21. January 2017

    Keywords

    • Entrepreneurship
    • Employment turnover
    • Job matching
    • Labour market value
    • Personal commitment

    Cite this

    @article{f515eaa5c87e4c78ad99d94c58950fa6,
    title = "Entrepreneurship and Employment Stability: Job Matching, Labour Market Value, and Personal Commitment",
    abstract = "This paper challenges the conventional belief that entrepreneurship is an unstable career path. Using longitudinal matched employer–employee data from Denmark, the analysis reveals that a transition to entrepreneurship decreases individual's employment turnover tendency. Three explanations are identified and empirically explored: (i) job matching, (ii) labour market value, and (iii) personal commitment. Entrepreneurs appear to be more productive and thus better matched compared to wageworkers. However, they also appear to be locked in entrepreneurship because of their anticipated lower value in the labour market and because of their personal attachment to the venture. The counter-intuitive finding – entrepreneurship yields greater employment stability – only holds with respect to subsequent transitions to wagework and not for new venture founding. The results have implications for our understanding of entrepreneurial entry and labour market dynamics.",
    keywords = "Entrepreneurship, Employment turnover, Job matching, Labour market value, Personal commitment, Entrepreneurship, Employment turnover, Job matching, Labour market value, Personal commitment",
    author = "Virgilio Failla and Francesca Melillo and Toke Reichstein",
    note = "Published online: 21. January 2017",
    year = "2017",
    month = "3",
    doi = "10.1016/j.jbusvent.2017.01.002",
    language = "English",
    volume = "32",
    pages = "162--177",
    journal = "Journal of Business Venturing",
    issn = "0883-9026",
    publisher = "Elsevier",
    number = "2",

    }

    Entrepreneurship and Employment Stability : Job Matching, Labour Market Value, and Personal Commitment. / Failla, Virgilio; Melillo, Francesca; Reichstein, Toke.

    In: Journal of Business Venturing, Vol. 32, No. 2, 03.2017, p. 162-177.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Entrepreneurship and Employment Stability

    T2 - Journal of Business Venturing

    AU - Failla,Virgilio

    AU - Melillo,Francesca

    AU - Reichstein,Toke

    N1 - Published online: 21. January 2017

    PY - 2017/3

    Y1 - 2017/3

    N2 - This paper challenges the conventional belief that entrepreneurship is an unstable career path. Using longitudinal matched employer–employee data from Denmark, the analysis reveals that a transition to entrepreneurship decreases individual's employment turnover tendency. Three explanations are identified and empirically explored: (i) job matching, (ii) labour market value, and (iii) personal commitment. Entrepreneurs appear to be more productive and thus better matched compared to wageworkers. However, they also appear to be locked in entrepreneurship because of their anticipated lower value in the labour market and because of their personal attachment to the venture. The counter-intuitive finding – entrepreneurship yields greater employment stability – only holds with respect to subsequent transitions to wagework and not for new venture founding. The results have implications for our understanding of entrepreneurial entry and labour market dynamics.

    AB - This paper challenges the conventional belief that entrepreneurship is an unstable career path. Using longitudinal matched employer–employee data from Denmark, the analysis reveals that a transition to entrepreneurship decreases individual's employment turnover tendency. Three explanations are identified and empirically explored: (i) job matching, (ii) labour market value, and (iii) personal commitment. Entrepreneurs appear to be more productive and thus better matched compared to wageworkers. However, they also appear to be locked in entrepreneurship because of their anticipated lower value in the labour market and because of their personal attachment to the venture. The counter-intuitive finding – entrepreneurship yields greater employment stability – only holds with respect to subsequent transitions to wagework and not for new venture founding. The results have implications for our understanding of entrepreneurial entry and labour market dynamics.

    KW - Entrepreneurship

    KW - Employment turnover

    KW - Job matching

    KW - Labour market value

    KW - Personal commitment

    KW - Entrepreneurship

    KW - Employment turnover

    KW - Job matching

    KW - Labour market value

    KW - Personal commitment

    UR - https://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=954921404223

    U2 - 10.1016/j.jbusvent.2017.01.002

    DO - 10.1016/j.jbusvent.2017.01.002

    M3 - Journal article

    VL - 32

    SP - 162

    EP - 177

    JO - Journal of Business Venturing

    JF - Journal of Business Venturing

    SN - 0883-9026

    IS - 2

    ER -