Abstract
Research on organizational stratification and mobility concerns with individual mobility within and across established organization, while mobility into entrepreneurship has received much less attention. The present paper theorizes on the link between organizational wage inequality and mobility into entrepreneurship. In doing so, the paper makes an important distinction between wage inequality based on human capital variations (explained wage inequality) and that does not (residual wage inequality) while predicting implications for mobility into entrepreneurship. Empirical evidence obtained from Swedish business service sector confirms our prediction that while explained wage inequality constrains mobility into entrepreneurship, residual wage inequality facilitate the same.