SPOUSES, CHILDREN, AND ENTREPRENEURSHIP

Joao Galindo da Fonseca and Charles Berubé

International Economic Review, 2023, vol. 64, issue 3, 1165-1199

Abstract: We study the relationship between family and entrepreneurship decisions. Family influences entrepreneurship decisions via two channels: (i) Spouses work more in case of business failure and (ii) children increase the cost of failure. We use administrative matched owner–employer–employee–spouse data to estimate the predictions derived from our model. We find evidence that marriage decreases entry into entrepreneurship and increases average firm size, consistent with mechanism (ii) dominating the (i). Using direct information on children, we find that more children decrease entry into entrepreneurship and increase average firm size.

Date: 2023
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https://doi.org/10.1111/iere.12626

Related works:
Working Paper: Spouses, children and entrepreneurship (2020)
Working Paper: Spouses, Children and Entrepreneurship (2020)
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