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Economic Perspectives, Vol. 30, 3rd, No. 3, 2006
The Self-employment Duration of Younger Men over the Business Cycle

There are two competing views of self-employment that appear to be at odds with one another. On the one hand, entrepreneurs are credited with stimulating job growth and encouraging innovation. President George W. Bush clearly expressed this sentiment in a recent speech in which he stated that cutting taxes is important because “70 percent of the new jobs in America are created by small businesses.” Policies that encourage the creation of small businesses are based upon just such a perspective.

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