There is no robust empirical support for the effect of financial incentives on the decision towork in self-employment rather than as a wage earner. In the literature, this is seen as apuzzle. We offer a focus on the opportunity cost, i.e. the wages given up as an employee.Information on income...

In this paper, we investigate how changes in the skill mix of local labor supply are absorbedby the economy. We distinguish between three adjustment mechanisms: through factorprices, through an expansion in the size of those production units that use the moreabundant skill group more...

We investigate the interdependence of debt financing and R&D activities of young firms.Using micro-level data of the KfW/ZEW Start-up Panel, our estimation results show that firmcharacteristics are more important than personal characteristics of the founders for explainingyoung firms’...

This paper analyses the impact of a change in Australia’s immigration policy, introduced inthe mid-1990s, on migrants’ probability of becoming entrepreneurs. The policy changeconsists of stricter entry requirements and restrictions to welfare entitlements. The resultsindicate that those who...

The purpose of this inductive theory-building paper is to address the following research question: How does the role of social capital in fostering the international growth of new technology-based firms (NTBFs) evolve over time? It does so by theorizing from a three-year longitudinal study of...

The research question addressed here is: How does the nature of local embeddedness of network relationships influence new venture internationalization? We distinguish between ties’ spatial embeddedness as dispersed or concentrated. We explore local bridging tie embeddedness’ differential...