We control for credit market availability by including
measures of whether the household was a member
or customer of various financial institutions in
the past. Like the labor supply variables, we includeIn table 3, we estimate probit models of who becomes
an entrepreneur for the three periods. The first
set of results in this table reports on the pre-crisis findings.
The dependent variable is equal to one if the household
runs a business in 1997 that was founded between
1992 and 1997 and zero if the household does not have
a business in 1997.18 The second set of results reports
on the crisis findings, where the dependent variable is
equal to one if the household starts a business in 1998
that survives until 2001, and it is equal to zero otherwise.
The post-crisis findings are found in the third
set of results, and the dependent variable in this regression
is equal to one if the household has a business
in operation in 2001, which was founded between 1999
and 2001, and it is equal to zero otherwise. The figures
reported in the table indicate the marginal effect of
an infinitesimal change in each continuous variable
on the probability of starting a business. For dummy
variables, we report the impact of changing the variable
in question from zero to one.
We control for credit market availability by including
measures of whether the household was a member
or customer of various financial institutions in
the past. Like the labor supply variables, we includeIn table 3, we estimate probit models of who becomes
an entrepreneur for the three periods. The first
set of results in this table reports on the pre-crisis findings.
The dependent variable is equal to one if the household
runs a business in 1997 that was founded between
1992 and 1997 and zero if the household does not have
a business in 1997.18 The second set of results reports
on the crisis findings, where the dependent variable is
equal to one if the household starts a business in 1998
that survives until 2001, and it is equal to zero otherwise.
The post-crisis findings are found in the third
set of results, and the dependent variable in this regression
is equal to one if the household has a business
in operation in 2001, which was founded between 1999
and 2001, and it is equal to zero otherwise. The figures
reported in the table indicate the marginal effect of
an infinitesimal change in each continuous variable
on the probability of starting a business. For dummy
variables, we report the impact of changing the variable
in question from zero to one.
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