The Wealth Effect on New Business Startups in a Developing Economy

C-Tier
Journal: Economica
Year: 2006
Volume: 73
Issue: 291
Pages: 367-392

Authors (2)

ALICE MESNARD (not in RePEc) MARTIN RAVALLION

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The paper tests for nonlinearities in the wealth effect on self‐employment, as can arise from startup costs or liquidity constraints. Using both nonparametric and parametric methods, we show that the relationship between the probability of a return migrant to Tunisia starting up a business and the stock of his savings repatriated at return is concave for almost the entire range of our data, though we find weak evidence of a convex relationship at very low wealth levels. Our results suggest that the aggregate self‐employment rate is an increasing function of aggregate wealth, but a decreasing function of wealth inequality.

Technical Details

RePEc Handle
repec:bla:econom:v:73:y:2006:i:291:p:367-392
Journal Field
General
Author Count
2
Added to Database
2026-01-29