Education, social identity and self-employment over time: evidence from a developing country
Education, social identity and self-employment over time: evidence from a developing country
While the extant literature suggests that an individual’s occupational choice depends on the level of economic development, little is known about how the dynamics of education and social identity impact self-employment choice over time in a developing country setting. The pseudo panel regression results presented here suggest that higher education decreases the likelihood of individuals’ choice of self-employment over time in India, but increases it in most developed cohorts. Such transitional dynamics are more prominent among individuals who belong to historically determined backward classes. Furthermore, the results suggest sectoral differences in self-employment choice – individuals with higher education and wealth have a greater likelihood of transiting into self-employment over time in agriculture while similar individuals in non-agriculture exit self-employment. In both sectors, however, education moderates the impact of social identity on self-employment choice. The paper underscores the need for policy shifts towards entrepreneurship along the path of economic development.
Caste, Entrepreneurship, India, Pseudo-panels, Self-employment choice, Social class
1449-1468
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531
Shrivastava, Mili
635e9da4-8c3d-42c6-97fd-defb00abeee2
Mishra, Tapas
218ef618-6b3e-471b-a686-15460da145e0
December 2022
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531
Shrivastava, Mili
635e9da4-8c3d-42c6-97fd-defb00abeee2
Mishra, Tapas
218ef618-6b3e-471b-a686-15460da145e0
Tamvada, Jagannadha Pawan, Shrivastava, Mili and Mishra, Tapas
(2022)
Education, social identity and self-employment over time: evidence from a developing country.
Small Business Economics, 59 (4), .
(doi:10.1007/s11187-021-00583-5).
Abstract
While the extant literature suggests that an individual’s occupational choice depends on the level of economic development, little is known about how the dynamics of education and social identity impact self-employment choice over time in a developing country setting. The pseudo panel regression results presented here suggest that higher education decreases the likelihood of individuals’ choice of self-employment over time in India, but increases it in most developed cohorts. Such transitional dynamics are more prominent among individuals who belong to historically determined backward classes. Furthermore, the results suggest sectoral differences in self-employment choice – individuals with higher education and wealth have a greater likelihood of transiting into self-employment over time in agriculture while similar individuals in non-agriculture exit self-employment. In both sectors, however, education moderates the impact of social identity on self-employment choice. The paper underscores the need for policy shifts towards entrepreneurship along the path of economic development.
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Accepted/In Press date: 9 November 2021
e-pub ahead of print date: 18 January 2022
Published date: December 2022
Additional Information:
Funding Information:
We are grateful to David Audretsch, Adam Lederer, and two anonymous referees their constructive comments and suggestions. We thank the late Stephan Klasen, Tomasz Mickiewicz and Alcino Azevedo for their feedback on an earlier draft of the article.
Publisher Copyright:
© 2022, The Author(s).
Keywords:
Caste, Entrepreneurship, India, Pseudo-panels, Self-employment choice, Social class
Identifiers
Local EPrints ID: 452662
URI: http://eprints.soton.ac.uk/id/eprint/452662
ISSN: 0921-898X
PURE UUID: 7b6ac3fc-9daa-48e9-bc53-8b3b49fa1f22
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Date deposited: 11 Dec 2021 11:33
Last modified: 17 Mar 2024 03:36
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Author:
Mili Shrivastava
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