Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33462
Authors: 
Parker, Simon C.
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2071
Abstract: 
A simple occupational choice model is used to predict that entrepreneurs who found new firms are more likely to work for small than for large firms prior to start-up. The mechanism underlying the result is heterogeneous risk aversion. The model also predicts a positive association between new firm formation and previous self-employment experience. These predictions accord with previous empirical findings, but notably self-selection rather than productivity effects can explain them.
Subjects: 
entrepreneurship
occupational choice
firm size
JEL: 
J21
J23
J62
Document Type: 
Working Paper

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