Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69907
Authors: 
Fritsch, Michael
Sorgner, Alina
Year of Publication: 
2013
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 539
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

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