Income Mobility of Owners of Small Businesses when Boundaries between Occupations are Vague



Table 7. Shifts from wage earner to owner of small business and shift from self-employment
and closely held firm to widely held firm. Percentage of “shifters” for combinations of
period
t-1 and period t quintiles. Yearly transitions, 1993-1994, 1997-1998, and 2002-
2003.

Transitions 1993-1994

From wage earner to owner of small business

(13,524 obs)

From self-employment and closely held firm to
widely held firm (2,501 obs)

From

To quintile

From

To quintile

quintile

1

2

3

4

5

Total

quintile -

1

2

3

4

5

Total

1

19.5

4.6

2.1

1.7

1.7

29.5

1

6.9

2.8

1.2

1.1

1.6

13.6

2

4.9

5.5

3.2

2.0

1.4

17.1

2

1.8

3.8

1.8

1.7

0.6

9.7

3

2.1

2.8

4.9

3.4

1.7

14.8

3

1.1

2.8

4.2

3.2

1.6

12.8

4

0.9

1.3

2.6

6.5

4.4

15.7

4

0.8

1.0

2.7

7.3

5.2

17.0

5

0.7

0.5

0.9

2.8

18.0

22.9

5

1.3

1.2

2.2

4.8

37.4

46.9

Total

28.1

14.7

13.7

16.4

27.2

100.0

Total

11.8

11.6

12.2

18.0

46.5

100.0

Transitions 1998-1999

From wage earner to owner of small business

From self-employment and closely held firm to
widely held firm (3,133 obs)

(14,398 obs)

From

To quintile

From

To quintile

quintile

1

2

3

4

5

Total

quintile

1

2

3

4

5

Total

1

17.4

4.2

2.3

1.3

1.1

26.2

1

4.6

1.7

1.1

1.2

1.1

9.6

2

4.1

5.6

3.3

2.0

1.1

16.1

2

1.6

2.8

1.9

1.3

0.9

8.5

3

1.8

2.4

5.6

4.0

1.5

15.3

3

1.2

1.9

2.8

2.6

1.6

10.1

4

1.0

1.1

3.1

8.4

4.5

18.1

4

0.8

1.3

2.4

7.0

5.3

16.8

5

0.9

0.4

0.8

2.8

19.4

24.3

5

2.7

1.5

2.8

7.1

40.9

55.0

Total

25.2

13.7

15.2

18.5

27.5

100.0

Total

10.9

9.2

11.1

19.2

49.7

100.0

Transitions 2002-2003

From wage earner to owner of small business
(12,134 obs)

From self-employment and closely held firm to
widely held firm (3,348 obs)

From

To quintile

From

To quintile

quintile

1

2

3

4

5

Total

quintile

Total

1

15.9

3.9

1.9

1.3

1.3

24.3

1

6.2

2.3

1.1

1.2

2.1

12.9

2

4.0

5.2

3.5

1.8

0.9

15.4

2

1.8

3.3

2.2

1.0

1.3

9.5

3

1.9

2.6

6.0

4.5

1.6

16.6

3

1.4

1.6

3.3

2.3

2.1

10.7

4

1.6

1.5

2.7

8.0

4.8

18.5

4

1.1

1.3

2.5

5.4

5.2

15.5

5

1.2

0.6

0.9

3.0

19.5

25.2

5

2.5

1.5

2.6

6.7

38.1

51.4

Total

24.6

13.8

15.0

18.6

28.0

100.0

Total

13.1

9.9

11.7

16.6

48.7

100.0

17



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