The impact of consumer credit access on self-employment and entrepreneurship

• 成果类型: Article
• 署名作者: Herkenhoff, Kyle; Phillips, Gordon M.; Cohen-Cole, Ethan
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; University of Minnesota System; University of Minnesota Twin Cities; National Bureau of Economic Research; Dartmouth College
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.03.004
• 发表日期: 2021
• 页码: 345-371
• 关键词: Entrepreneurship; Start-ups; Credit access; Personal bankruptcy

摘要

We examine how consumer credit affects entrepreneurship by linking three million earnings and pass-through tax records to credit reports. In the cross-section, we show that self-employment without employees and employer firm ownership increase monotonically with credit limits and credit scores. We then isolate individuals who have had discrete increases in credit limits after the exogenous removal of bankruptcy flags to measure the effects of personal credit on entrepreneurship. Following bankruptcy flag removal, individuals are more likely to start a new employer business and borrow extensively. Those who own businesses with employees borrow $40,0 0 0 more after bankruptcy flag removal, a 33% gain relative to the sample average. (c) 2021 Elsevier B.V. All rights reserved.