Financial Development, Entrepreneurship, and Job Satisfaction
Bianchi, Milo (2012), Financial Development, Entrepreneurship, and Job Satisfaction, The Review of Economics and Statistics, 94, 1, p. 273-286. 10.1162/REST_a_00156
TypeArticle accepté pour publication ou publié
Journal nameThe Review of Economics and Statistics
MetadataShow full item record
Dauphine Recherches en Management [DRM]
Abstract (EN)This paper shows that utility differences between the self-employed and 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 the creation of firms 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.
Subjects / KeywordsFinancial development; job satisfaction; entrepreneurship
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