Finance Seminar with Rawley Heimer, Boston College, Carroll School of Management
The Department of Finance is proud to announce the upcoming seminar with Rawley Heimer, Boston College, Carroll School of Management.
Rawley Heimer will present:
Personal Wealth and Self-Employment
We examine the effect of wealth windfalls on self-employment decisions using a novel data set on unexpected payments to individuals from the fracking revolution in Texas. Individuals who receive large wealth shocks (greater than $50,000) have 55%-58% greater self-employment rates relative to individuals who receive small wealth shocks or no wealth shock. We evaluate several economic channels that could drive these results and find that wealth shocks do not alleviate entrepreneurial financial constraints or reduce risk aversion, but drive self-employment through non-pecuniary channels, such as leisure. Our results indicate that heterogeneity in self-employment types is important when assessing the impact of entrepreneurship on the broader economy.
Solbjerg Plads 3,