Investigating the relationship between different type of entrepreneurial activities and income inequality using country level data

Abstract

The extent to which entrepreneurship can affect income inequality have become a recent topic of debates among policymakers and economist. Some believe entrepreneurship is a source of enhanced income mobility, while others believe it contributes to widen the income gap among different social class. In this study, I stand the argument that entrepreneurship has a positive relationship with income inequality. Moreover, referring to necessity/opportunity dichotomy, I explore further how a certain type of entrepreneurship can contribute to the variation of income inequality.