This article utilizes a new nationally representative survey, executed in January 2020, that measures non-standard work. The author estimates the incidence of contract company employment and freelancing and describes who goes into non-standard employment. He then studies earnings and access to employer-provided training among contract company employees—the largest and most mis-measured group of non-standard workers. Training is important because it affects wage growth and career trajectories and also gives insight into the evolving character of employment relationships. Findings indicate that contract company employees face an earnings penalty but that considerable heterogeneity occurs within this category. The analysis of multiple forms of formal training finds that contract company employees receive less training than do standard employees even after multiple controls. Informal training is more textured due to the nature of social interactions inherent in its availability. Throughout the analysis, racial and ethnic disparities are apparent.
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The impact of consumer credit access on self-employment and entrepreneurship
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.
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- Award ID(s):
- 1824422
- PAR ID:
- 10281720
- Date Published:
- Journal Name:
- Journal of financial economics
- Volume:
- 141
- Issue:
- 1
- ISSN:
- 1879-2774
- Page Range / eLocation ID:
- 345-371
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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