SELF‐EMPLOYMENT AND WEALTH INEQUALITY

Thomas Lindh · Henry Ohlsson

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Income, Poverty, and Inequality Historical Economic and Social Studies Financial Literacy, Pension, Retirement Analysis

Abstract

Is the decision to become and stay self‐employed constrained by access to credit? If this is the case, a more unequal wealth distribution will—for empirically observed distributions–imply more self‐employed, since the number of people able to provide collateral will be higher. Swedish data between 1920 and 1992 suggest that wealth inequality and the share of self‐employed among those working are positively related. The data, therefore, are consistent with the hypothesis that liquidity constraints are binding on the decision to become and stay self‐employed.

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1993Sticking it Out: Entrepreneurial Survival and Liquidity Constraints 1994Sticking it Out: Entrepreneurial Survival and Liquidity Constraints 1993Entrepreneurial Decisions and Liquidity Constraints 1994Entrepreneurial Decisions and Liquidity Constraints 1996EARNINGS, INDEPENDENCE OR UNEMPLOYMENT: WHY BECOME SELF‐EMPLOYED?1996Self-Employment and Windfall Gains: Evidence from the Swedish Lottery 1996House Prices, The Supply of Collateral and the Enterprise Economy 1961The Graduation of Income Distributions

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