Do entrepreneurs stay in their industry? Evidence from population-wide data

Using population-wide administrative data, we study industry persistence in career transitions, focusing on entrepreneurial entry. We document that individuals who enter entrepreneurship are significantly more likely to remain in the same industry as in their prior employment compared to individuals who change workplace but remain in paid employment. This persistence is particularly strong among individuals with longer prior industry experience. We further show that entrepreneurs who remain in their prior industry have higher post-entry incomes and income growth than those who switch industries. The results suggest that entrepreneurship largely reflects industry-specific career continuation rather than broad occupational reallocation.