Skip to main content
Article thumbnail
Location of Repository

Why so many local entrepreneurs?

By Claudio Michelacci and Olmo Silva

Abstract

We document that the fraction of entrepreneurs working in the region where they were born is significantly higher than the corresponding fraction for dependent workers. This is more pronounced in more developed regions and positively related to the degree of local financial development. Firms created by locals are bigger, operate with more capital-intensive technologies, and obtain greater financing per unit of capital invested, than firms created by nonlocals. This suggests that there are so many local entrepreneurs because locals can better exploit the financial opportunities available in the region where they were born. This helps to explain how local financial development causes persistent disparities in entrepreneurial activity, technology, and income

Topics: HD Industries. Land use. Labor
Publisher: MIT Press
Year: 2007
DOI identifier: 10.1162/rest.89.4.615
OAI identifier: oai:eprints.lse.ac.uk:30768
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://www.mitpressjournals.or... (external link)
  • http://eprints.lse.ac.uk/30768... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.