Economics Publications Economics 2-2014 Entrepreneurship over the business cycle Li Yu Central University of Finance and Economics Peter F. Orazem Iowa State University,
[email protected] Robert W. Jolly Iowa State University Follow this and additional works at: http://lib.dr.iastate.edu/econ_las_pubs Part of the Entrepreneurial and Small Business Operations Commons, Income Distribution Commons, and the Labor Economics Commons The ompc lete bibliographic information for this item can be found at http://lib.dr.iastate.edu/ econ_las_pubs/347. For information on how to cite this item, please visit http://lib.dr.iastate.edu/ howtocite.html. This Article is brought to you for free and open access by the Economics at Iowa State University Digital Repository. It has been accepted for inclusion in Economics Publications by an authorized administrator of Iowa State University Digital Repository. For more information, please contact
[email protected]. ENTREPRENEURSHIP OVER THE BUSINESS CYCLE Li Yua1, Peter F. Orazemb and Robert W. Jollyb a Central University of Finance and Economics b Iowa State University Abstract The fraction self-employed rises in recessions because wage work is more sensitive than self-employment to the business cycle, not because of necessity entrepreneurship. Graduating during a recession reduces the probability of starting a business for the next 11 years. Key words: Entrepreneurship; Boom; Bust; Delay; Graduates JEL code: J2 NOTICE: this is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document.