Online appendix to: Entrepreneurship, Labor Market Mobility and the Role of Entrepreneurial Insurance

A A.1

Alexandre Gaillard

Sumudu Kankanamge

Toulouse School of Economics,

Toulouse School of Economics,

University of Toulouse Capitole,

University of Toulouse Capitole,

Toulouse, France

Toulouse, France

Facts about entrepreneurship Fear of failure

Figure 1 plots the relation between the fear of failure index and the self-employment rate in the US as evidenced by the data collected by the Global Entrepreneurship Monitor. This relation is discussed in section 2.1 of the paper.

A.2

Additional occupational flows

Figures 2, 3, 4 and 5 below provide additional occupational flow evidence from the CPS in addition to the flow plot provided and discussed in section 2.2 of the paper. Figure 2 considers the period from 2001 to 2015 and Figure 3 considers the alternative data period 2012-2015 (excluding the 2009 - 2011 unemployment peak). Figure 4 only considers full-time occupation and discards part-time occupied households from the characterization. The shapes are quite similar to the one in the core paper. We notice however that the transition from paidemployment to entrepreneurship is U-shaped in the two dimensions of wage and educational attainment for these 3 figures. Finally, in figure 5 we display the yearly transitions. It appears that when considering only self-employed business-owners, the S-shape of the transition from entrepreneurship to paid-employment becomes a hump-shape decreasing only for college graduates. This could be due to the fact that large movements occur at a high frequency (quarterly frequency), suggesting that many lower than high-school individuals try to run a business but fail relatively quickly (before one year). We also did compute these transitions at a monthly frequency. Shapes are similar to those at a quarterly frequency.

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Self−employment rate

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Figure 1. Fear of failure index and self-employment rate in the US. Source: Global Entrepreneurship Monitor and The Bureau of Labor Statistics (BLS). The Fear of Failure index measures the 18-64 old population perceiving good opportunities to start a business while indicating that the fear of failure would prevent them from doing so. The self-employment rate (over the working population) is the fraction of the 20-65 old population declaring themselves as self-employed (incorporated or not).

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