Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69907 
Year of Publication: 
2013
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 539
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We argue that entrepreneurial choice proceeds in at least in two steps, with vocational choice nearly always preceding choice of employment status, whether that be self-employment or dependent employment. Since the two decisions are interrelated, analysis of entrepreneurial choice as a single act may lead to inconsistent estimates of the factors that determine the decision to launch a business venture. Our empirical analysis utilizes a bivariate probit model that jointly estimates both decisions. The results support our argument that entrepreneurial choice is a two-stage decision process.
Subjects: 
entrepreneurial choice
vocational choice
personality traits
JEL: 
L26
J24
D01
Document Type: 
Working Paper

Files in This Item:
File
Size
257.71 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.