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Geoffrey Borchhardt
Yale University
Olav Sorenson
University of California, Los Angeles
Working Paper
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● Entrepreneurship as the safe option: Evidence from India
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We examine the returns to entrepreneurship in India. We find thatentrepreneurs, on average, earn more than they would expect in paid employment.Except among the most highly educated, that positive effect holds for every subgroupof entrepreneurs, from the growth-oriented to the self-employed offering personalservices. Further analysis reveals that this positive effect appears to stem almostentirely from the fact that entrepreneurs in India have more stable income streams,they have fewer months with no income. Entrepreneurship may therefore representa safer option for these individuals.

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