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Abstract The COVID-19 pandemic and the associated government mandated shutdowns caused a historic shock to the U.S. economy and a disproportionate job loss concentrated among the working class. While an [...]

The effects of parental wealth and human capital on the probability of an individual entering self-employment and the relationship between gender and propensity toward self-employment were examined through an analysis of data from the four original cohorts of the National Longitudinal Survey (NLS) of Labor Market Experience. The data sets represented 11-15 survey years for each cohort and included demographic and income variables and education, self-employment, and asset measures. Among the study's main conclusions were the following: (1) although the annual rate of self-employment reaches only 15%, self-employment touches one-fifth of young men and occupies nearly one-half of their early careers; (2) self-employment among young women is roughly one-third lower than among young men; (3) parental history of self-employment is associated with a probability of entering self-employment but not with intensity of self-employment or age at which self-employment begins; (4) asset holdings are positively correlated with self-employment among young men but not among young women; (5) a moderate relationship exists between self-employment and parental wealth; and (6) own-wealth accumulation aids self-employment among young men but not young women. (Contains 17 references. Appended are a summary of NLS data sets and 20 tables.) (MN)