oa Investigation the Relationship between Entrepreneurship Income Inequalities

This paper aims to investigate the relationship between entrepreneurship and income inequalities across some countries which have large variances in total early-stage entrepreneurial activity. The study uses strongly balanced data from 2004-2013, covering 19 countries, composing 179 observations. The study uses OLS regression, Simultaneous equation model (SEM) and Zellner»s seemingly unrelated regression (SUR). The results find that there is a strong positive direction between TEA and Gini coefficient. And Gini coefficient is an explanatory variable for change in TEA. Controversy, TEA is not explanatory the change of Gini coefficient. The results find that the coefficient of these model is 32, 65 and 80 respectively. In other words, according to SEM and SUR model, as long as Gini coefficient increases by 0.1, TEA increases by 6.5 and 8 unit respectively.