We examine whether having previously been self-employed is a negative signal on the job market. In a UK field experiment where two applications of otherwise equally qualified individuals were sent out in response to the same vacancies in human resource management, we find that entrepreneurs systematically receive fewer responses than non-entrepreneurs. Empirical studies that treat market wages as the opportunity cost of remaining self-employed are therefore likely to overestimate alternative earnings to entrepreneurship.

Self-Employed but Looking - A Labor Market Experiment

The BOLT-LMM software package computes statistics for association between phenotype and genotypes using a linear mixed model (LMM) [1]. By default, BOLT-LMM assumes a Bayesian mixture-of-normals prior for the random effect attributed to SNPs other than the one being tested. This model generalizes the standard "infinitesimal" mixed model used by existing mixed model association methods (e.g., EMMAX [2], FaST-LMM [3-6], GEMMA [7], GRAMMAR-Gamma [8], GCTA-LOCO [9]), providing an opportunity for increased power to detect associations while controlling false positives. Additionally, BOLT-LMM applies algorithmic advances to compute association statistics much faster than existing methods, both when using the Bayesian mixture model and when specialized to standard mixed model association.

BOLT-LMM v1.0 User Manual

Empirical studies have shown that entrepreneurs earn, on average, less than the market wage for employees with otherwise similar characteristics. We examine whether having previously been self- employed is in itself a negative signal have that job market. In that field experiment where two applications of that equally qualified individuals were sent entrepreneurs entrepreneurs same vacancies, we find on a systematically receive fewer responses than non- entrepreneurs. Thus, it appears the the earnings differential the partially explained by the fact the for do not otherwise access to We reference jobs is practice. in discuss what type of unfavorable information self-employment may carry.