|
EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/27595
|
| | |
| Title: | | Matching of Individuals for Start-Ups: A Test of the O-Ring Theory  |
| Authors: | | Müller, Bettina |
| Issue Date: | | 2008 |
| Series/Report no.: | | ZEW Discussion Papers 08-112 |
| Abstract: | | In this paper I analyse how individuals match for for the purpose of setting up a new firm. As a theoretical basis I use the O-ring theory introduced by Kremer (1993) and applied to new firms by Fabel (2004). The O-ring theory predicts that individuals segregate between firms according to their level of ability. Further, the theory implies that a higher average ability level within firms is positively related to both the number of individuals and capital per head. Using a rich employer-employee data set on the whole population of Danish firms founded in 1998 most of the predictions of the O-ring theory are rejected. I find that individuals do not match with individuals with the same level of ability. Furthermore, ability and firm size turn out to be negatively correlated. There is only some support for the hypothesis concerning the positive relationship between ability and capital per head. |
| Subjects: | | Entrepreneurship O-Ring Theory Theory Test |
| JEL: | | M13 L26 D23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/27595
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|