Abstract

Standard theories of occupational choice assume that the employment opportunities for entrepreneurs and wage workers with otherwise similar qualifications are equal (Amit et al., 1995; Douglas and Shepherd, 2002; Evans and Leighton, 1989; Hamilton, 2000; Kihlstrom and Laffont, 1979; Kolvereid, 1996; Kolvereid and Isaksen, 2006; Lucas, 1978; van Praag and van Ophem, 1995). We examine whether having previously been self-employed can in itself be a negative signal on the job market. To the best of our knowledge, this study is the first to test the equal-employmentopportunity assumption directly.

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