The impact of consumer credit access on self-employment and entrepreneurship
| Autor: | Ethan Cohen-Cole, Kyle Herkenhoff, Gordon M. Phillips |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
040101 forestry
Economics and Econometrics Entrepreneurship 050208 finance Earnings Sample average Strategy and Management 05 social sciences FLAGS register 04 agricultural and veterinary sciences Bankruptcy Accounting 0502 economics and business 0401 agriculture forestry and fisheries Demographic economics Business Finance Self-employment Flag (geometry) |
| Zdroj: | Journal of Financial Economics. 141:345-371 |
| ISSN: | 0304-405X |
| DOI: | 10.1016/j.jfineco.2021.03.004 |
| Popis: | We examine how consumer credit affects entrepreneurship by linking three million earnings and pass-through tax records to credit reports. In the cross-section, we show that self-employment without employees and employer firm ownership increase monotonically with credit limits and credit scores. We then isolate individuals who have had discrete increases in credit limits after the exogenous removal of bankruptcy flags to measure the effects of personal credit on entrepreneurship. Following bankruptcy flag removal, individuals are more likely to start a new employer business and borrow extensively. Those who own businesses with employees borrow $40,000 more after bankruptcy flag removal, a 33% gain relative to the sample average. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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