Union power, entrepreneurial risk, and entrepreneurship
The paper proposes that a trade-off can be identified between the union power and the entry rate of new enterprises. It suggests that union power increases the entrepreneurial failure risk, thereby discouraging entrepreneurship and reducing the employment opportunities. In addition, we show that high price uncertainty and a union-controlled labour market is a harmful combination for entrepreneurship.
KeywordsEntrepreneurial risk Union power Entrepreneurship Occupational choice
JEL ClassificationsJ23 J24 J51 L26 M13
We are grateful to Mikko Mustoner and two anonymous referees for helpful comments and suggestions.
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