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Author: Levine, Ross
Resulting in 5 citations.
1. Hu, Qing
Levine, Ross
Lin, Chen
Tai, Mingzhu
Mentally Spent: Credit Conditions and Mental Health
NBER Working Paper No. 25584, National Bureau of Economic Research, February 2019.
Also: https://www.nber.org/papers/w25584
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Credit/Credit Constraint; Debt/Borrowing; Depression (see also CESD); Geocoded Data; Health, Mental; State-Level Data/Policy

In light of the human suffering and economic costs associated with mental illness, we provide the first assessment of whether local credit conditions shape the incidence of mental depression. Using several empirical strategies, we discover that bank regulatory reforms that improved local credit conditions reduced mental depression among low-income households and the impact was largest in counties dominated by bank-dependent firms. On the mechanisms, we find that the regulatory reforms boosted employment, income, and mental health among low-income individuals in bank-dependent counties, but the regulatory reforms did not increase borrowing by these individuals.
Bibliography Citation
Hu, Qing, Ross Levine, Chen Lin and Mingzhu Tai. "Mentally Spent: Credit Conditions and Mental Health." NBER Working Paper No. 25584, National Bureau of Economic Research, February 2019.
2. Levine, Ross
Rubinstein, Yona
Does Entrepreneurship Pay? The Michael Bloombergs, the Hot Dog Vendors, and the Returns to Self-Employment
Working Paper, Haas School of Business, University of California--Berkeley, September 2012
Cohort(s): NLSY79
Publisher: University of California - Berkeley
Keyword(s): Armed Forces Qualifications Test (AFQT); Current Population Survey (CPS) / CPS-Fertility Supplement; Educational Attainment; Entrepreneurship; Illegal Activities; Occupational Aspirations; Occupational Choice; Risk-Taking; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Rotter Scale (see Locus of Control); Self-Employed Workers; Self-Esteem; Wages

Permission to reprint the abstract has not been received from the publisher.

We use the classification of the self-employed into incorporated and unincorporated to separate between “entrepreneurs” and other business owners. Using data from the CPS and the NLSY79, we find, in contrast to a large body of research, that entrepreneurs earn much more per hour and work many more hours than their salaried and unincorporated counterparts. Moreover, the incorporated self-employed have distinct cognitive and noncognitive traits: they are more educated, and even as teenagers, they score higher on learning aptitude tests, exhibit greater self-esteem, and engage in more aggressive, illicit, risk-taking activities. And, these traits are much more important for entrepreneurial success than they are for success in other employment activities.
Bibliography Citation
Levine, Ross and Yona Rubinstein. "Does Entrepreneurship Pay? The Michael Bloombergs, the Hot Dog Vendors, and the Returns to Self-Employment." Working Paper, Haas School of Business, University of California--Berkeley, September 2012.
3. Levine, Ross
Rubinstein, Yona
Selection into Entrepreneurship and Self-Employment
NBER Working Paper No. 25350, National Bureau of Economic Research, December 2018.
Also: https://www.nber.org/papers/w25350
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Armed Forces Qualifications Test (AFQT); Entrepreneurship; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Rotter Scale (see Locus of Control); Self-Employed Workers; Wealth

We study the effects of ability and liquidity constraints on entrepreneurship. We develop a three sector Roy model that differentiates between entrepreneurs and other self-employed to address puzzling gaps that have emerged between theory and evidence on entry into entrepreneurship. The model predicts--and the data confirm--that entrepreneurs are positively selected on highly-remunerated human capital, but other self-employed are negatively selected on those same abilities; entrepreneurs are positively selected on collateral, but other self-employed are not; and entrepreneurship is procyclical, but self-employment is countercyclical.
Bibliography Citation
Levine, Ross and Yona Rubinstein. "Selection into Entrepreneurship and Self-Employment." NBER Working Paper No. 25350, National Bureau of Economic Research, December 2018.
4. Levine, Ross
Rubinstein, Yona
Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?
Quarterly Journal of Economics 132,2 (May 2017): 963-1018.
Also: https://academic.oup.com/qje/article-lookup/doi/10.1093/qje/qjw044
Cohort(s): NLSY79
Publisher: Oxford University Press
Keyword(s): Armed Forces Qualifications Test (AFQT); Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Entrepreneurship; Illegal Activities; Occupational Aspirations; Occupational Choice; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Self-Employed Workers

Permission to reprint the abstract has not been received from the publisher.

We disaggregate the self-employed into incorporated and unincorporated to distinguish between "entrepreneurs" and other business owners. We show that the incorporated self-employed and their businesses engage in activities that demand comparatively strong nonroutine cognitive abilities, while the unincorporated and their firms perform tasks demanding relatively strong manual skills. People who become incorporated business owners tend to be more educated and--as teenagers--score higher on learning aptitude tests, exhibit greater self-esteem, and engage in more illicit activities than others. The combination of "smart" and "illicit" tendencies as youths accounts for both entry into entrepreneurship and the comparative earnings of entrepreneurs. Individuals tend to experience a material increase in earnings when becoming entrepreneurs, and this increase occurs at each decile of the distribution.
Bibliography Citation
Levine, Ross and Yona Rubinstein. "Smart and Illicit: Who Becomes an Entrepreneur and Do They Earn More?" Quarterly Journal of Economics 132,2 (May 2017): 963-1018.
5. Levine, Ross
Rubinstein, Yona
Smart and Illicit: Who Becomes an Entrepreneur and Does It Pay?
NBER Working Paper No. 19276, National Bureau of Economic Research, August 2013.
Also: http://www.nber.org/papers/w19276
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Armed Forces Qualifications Test (AFQT); Current Population Survey (CPS) / CPS-Fertility Supplement; Educational Attainment; Entrepreneurship; Illegal Activities; Occupational Aspirations; Occupational Choice; Risk-Taking; Rosenberg Self-Esteem Scale (RSES) (see Self-Esteem); Rotter Scale (see Locus of Control); Self-Employed Workers; Self-Esteem; Wages

We disaggregate the self-employed into incorporated and unincorporated to distinguish between “entrepreneurs” and other business owners. The incorporated self-employed have a distinct combination of cognitive, noncognitive, and family traits. Besides coming from higher-income families with better-educated mothers, the incorporated—as teenagers—scored higher on learning aptitude tests, had greater self-esteem, and engaged in more aggressive, illicit, risk-taking activities. The combination of “smarts” and “aggressive/illicit/risk-taking” tendencies as a youth accounts for both entry into entrepreneurship and the comparative earnings of entrepreneurs. In contrast to a large literature, we also find that entrepreneurs earn much more per hour than their salaried counterparts.
Bibliography Citation
Levine, Ross and Yona Rubinstein. "Smart and Illicit: Who Becomes an Entrepreneur and Does It Pay?" NBER Working Paper No. 19276, National Bureau of Economic Research, August 2013.