Windfalls, Wealth, and the Transition to Self-Employment

Yannis Georgellis, John G Sessions, Nikolaos Tsitsianis

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39 Citations (SciVal)


We examine the transition to, and survival in, self-employment among a sample of British workers. We find evidence of capital constrains, with wealthier individuals being more likely to transit ceteris paribus. Windfall gains raise the probability of transition at a decreasing rate--gains of more than L20000-22000 reduce the probability of transition--and larger gains reduce the probability of transition amongst relatively wealthier respondents. We also find peculiarities in the effects of particular types of windfall; redundancy payments and inheritances raise the probability of transition, whilst lottery wins reduce the probability of (especially male) transitions. In contrast, inheritances (lottery wins) hinder (augment) self-employment survival.
Original languageEnglish
Pages (from-to)407-28
Number of pages22
JournalSmall Business Economics
Issue number5
Publication statusPublished - 2005


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