Entrepreneurship, Self-employment and the Labour Market

Simon C. Parker

in The Oxford Handbook of Entrepreneurship

Published in print May 2008 | ISBN: 9780199546992
Published online September 2009 | e-ISBN: 9780191577383 | DOI:

Series: Oxford Handbooks in Business and Management C

Entrepreneurship, Self-employment and the Labour Market

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This article surveys the entrepreneurship literature as it relates to the labour market. The purpose of this article is to describe, from a mainly but not exclusively economic perspective, the principal theoretical methods and empirical findings in the field. Entrepreneurship intersects with labour markets in several other ways. For example, human capital theory can be used to help explain entrepreneurs' business performance; and labour supply models can be used to help understand their work effort patterns. Both topics attract policy interest, because policy-makers frequently express interest in promoting successful enterprises, and fostering an ‘enterprise culture’ in which hard work is encouraged and rewarded. Policy-makers also promote entrepreneurship because they believe it creates employment growth and reduces unemployment.

Keywords: entrepreneurship; self-employment; labour market; human capital; labour supply models; employment growth

Article.  10669 words. 

Subjects: Entrepreneurship ; International Business

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