Talent workers as entrepeneurs
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Transcript of Talent workers as entrepeneurs
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Talent workers as entrepreneurs:a new approach to aspirational self-employment
(with J. Tyrowicz and B. Liberda)
Magdalena Smyk
WIEM 2015
3 July 2015
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Research shortcut
Research key points
Questions:Do flows from employment to self-employment tend to attractindividuals with higher potential to innovate?
Method:Model of choosing self-employment with special focus ontalent workers. Looking at stocks - mainly secondaryeducated; but we look at flows (skill-biased technologicalchange requires new skills).
Data:Panel - Polish Labour Force Survey 2001-2013
Result:Talent workers are more likely to enter self-employment andcreate new work places.
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Research shortcut
Research key points
Questions:Do flows from employment to self-employment tend to attractindividuals with higher potential to innovate?
Method:Model of choosing self-employment with special focus ontalent workers. Looking at stocks - mainly secondaryeducated; but we look at flows (skill-biased technologicalchange requires new skills).
Data:Panel - Polish Labour Force Survey 2001-2013
Result:Talent workers are more likely to enter self-employment andcreate new work places.
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Research shortcut
Research key points
Questions:Do flows from employment to self-employment tend to attractindividuals with higher potential to innovate?
Method:Model of choosing self-employment with special focus ontalent workers. Looking at stocks - mainly secondaryeducated; but we look at flows (skill-biased technologicalchange requires new skills).
Data:Panel - Polish Labour Force Survey 2001-2013
Result:Talent workers are more likely to enter self-employment andcreate new work places.
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Research shortcut
Research key points
Questions:Do flows from employment to self-employment tend to attractindividuals with higher potential to innovate?
Method:Model of choosing self-employment with special focus ontalent workers. Looking at stocks - mainly secondaryeducated; but we look at flows (skill-biased technologicalchange requires new skills).
Data:Panel - Polish Labour Force Survey 2001-2013
Result:Talent workers are more likely to enter self-employment andcreate new work places.
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Motivation
Motivation
Entrepreneurship (Wennekers and Thurik 1999, Van Stel et al.2005, Carree and Thurik 2010):
job creation,productivity growth,development and commercialization of increasing quality andvariety products
Two types of entrepreneurship - aspirational andnecessity-driven (Naude 2010, Estrin et al. 2013)
Empirically proven: aspirational entrepreneurs more successful(Estrin et al. 2011)
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Motivation
Does Polish entrepreneurship have a chance to besuccessful?
Source: EUROSTAT LFS and GEM
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Motivation
How to recognize ”high potential to innovate”?
Definition of talent worker by Hsieh et al. 2013:
at least tertiary education
one of the three top ISCO level occupation:
legislators, senior officials and managers;professionals;technicians and associate professionals
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Method
Method
Two identification strategies:
Identification 1: probability of switching from WE to SE(SE=1) or change job within WE (SE=0)
P(SE = 1|tenure < 13 months) (1)
Identification 2: probability of switching from WE to SE(SE=1) or change industry within WE (SE=0)
P(SE = 1|change industry within a year) (2)
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Method
Identification strategies
I 1 : P(SE = 1|tenure < 13 months) = α + β talent + γ x + δ z + ε(3)
I 2 : P(SE = 1|change industry within a year)) = α+β talent+γ x+δ z+ε(4)
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Method
Additional factors: mobility and productivity
Mobility - sector level indicators z
Based on claimed changes:
High mobility sectori ,t = 1 ifgross flowi ,t > average gross flowt
Mobility surplusi ,t = gross flowi ,t − average gross flowt
Based on claimed employment:
Downsizing in employment = 1 if# of workersi ,t−1 > # of workersi ,t
Income - proxy of productivity x
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Method
Additional factors: mobility and productivity
Mobility - sector level indicators z
Income - proxy of productivity x
Lack of SE income in LFS, so...
We calculated fitted values and residuals based on simpleMincerian regression
Income percentile in broader groups in respect to age, gender,residence and education levelAveraged residual in the groupOverpaid group = # of positive residualsk−# of negative residualsk
# of group membersk
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Data
Polish Labour Force Survey - 2001-2013
LMS individuals women men talent workers
WE 298 129 141 771 156 358 65 257SE 39 810 12 994 26 816 8 507U 65 310 31 794 33 516 -I 303 917 177 536 126 381 -
WE - SE 1 534 490 1 044 381
WE - WE (id1) 21 953 8 132 13 821 3 298WE - WE (id2) 8 182 3 125 5 057 381
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Data
Talent workers and tertiary educated
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Results
Talent workers drives self-employment entry
ID1 ID2
Talent worker 0.05*** 0.09***Female*talent -0.01 -0.03*
Married 0.02*** 0.05***Age 0.01*** 0.02***
Age2 -0.01*** -0.03***Female -0.02*** -0.03***
Medium size city 0.01** 0.02**Large city 0.01*** 0.03***
Year and quarter dummies INCLUDED INCLUDEDIndustry categories INCLUDED NOT INCLUDED
Observations 23,383 9,716
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Results
Talent workers drives self-employment entry
Talent worker 0.04*** 0.04*** 0.05*** 0.05*** 0.05*** 0.05***Female*talent -0.01 0 -0.01 0 0 0
high mobility 0.02***sector
mobility surplus 1.27***downsizing 0
employmentincome 0
percentileaverage residual 0.12***overpaid group 0.01**
Observations 23,383 23,383 23,383 23,383 23,383 23,383
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Results
Talent workers drives self-employment entry
Talent worker 0.10*** 0.10*** 0.09*** 0.10*** 0.11*** 0.12***Female*talent -0.03** -0.02 -0.03* -0.03* -0.02 -0.02
high mobility 0.11***sector
mobility surplus 3.93***downsizing 0.01
employmentincome 0
percentileaverage residual 0.38***overpaid group 0.05***
Observations 9,660 9,660 9,660 9,716 9,716 9,716
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Results
Talent workers are more likely to become employers
Do talent workers more likely to employ? Total sample of SE
Creating jobs Creating jobs
Talent worker 0.28*** 0.03***Occupation NO YES
Age NO YESAge2 NO YES
Female NO YESResidence NO YES
Married NO YESYear and quarter YES YES
Observations 82,623 82,623
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Conclusions
Conclusions
1 Talent workers are more likely to establish new firm thanother switchers
2 We control for industry specific mobility, job destruction,relative incomes or relative productivity of the worker.
3 Finally, talent workers are more likely to create new jobs.
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Conclusions
Thank you!
Talent workers as entrepreneurs: a new approach to aspirational self-employment
Conclusions
Appendix. Fields of study - results
socialSTEM humanities sciences services health
Talent worker 0.06*** -0.01 0.01 -0.01 0.11*Female*talent -0.01 0.01 0.04* 0.08 -0.04
Observations 8,715 1,006 3,127 1,927 546
socialSTEM humanities sciences services health
Talent worker 0.13*** 0.01 0.03 -0.04 0.67***Female*talent -0.04 0.02 0.04 0.13 -0.21***
Observations 3,392 444 1,555 767 176