Small Business and Self-employment as Income Mobility Mechanisms
"The contributions of small businesses to the labor market entry, skill training, and wage growth
of youth have been extensively documented in a series of research studies conducted in the mid-
1980s. That research confirmed that small businesses provide most first-time job opportunities
for young labor market entrants. Moreover, the skills and experience provided at those entry jobs
paid off handsomely for the affected youth, as witnessed by their subsequent wage growth.

This study extends the observation period for gauging income growth. Using the same
National Longitudinal Survey of Youth (NLSY) surveys used in earlier studies, this study tracks
employment and income experiences in a later phase of the typical work life. Whereas earlier
studies focused on the first years of labor market entry for youths aged 14-22, this study focuses
on those same workers a decade later. Specifically, this study focuses on young people aged 24-
32 years at the beginning of the observation period (1989). We then track their work history over
the subsequent 15 years (1989-2004)..."