Self-employment and attitudes towards risk: Timing and unobserved heterogeneity
Sarah Brown (),
Michael Dietrich,
Aurora Ortiz-Nuñez and
Karl Taylor
Journal of Economic Psychology, 2011, vol. 32, issue 3, 425-433
Abstract:
We explore the relationship between self-employment and attitudes towards financial risk using individual level data drawn from the US Panel Study of Income Dynamics (PSID), which includes measures of individuals' attitudes towards hypothetical gambles allowing us to explore the implications of interpersonal differences in risk attitudes for the probability of self-employment. Our empirical findings suggest that willingness to take financial risk is positively associated with self-employment. By exploiting the panel aspect of the PSID, we find evidence, whilst controlling for unobserved individual heterogeneity, consistent with a causal relationship between attitudes towards risk and self-employment with attitudes towards risk measured prior to becoming self-employed having a statistically significant positive influence on the probability of future self-employment.
Keywords: Risk; attitudes; Self-employment (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167487011000304
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:32:y:2011:i:3:p:425-433
Access Statistics for this article
Journal of Economic Psychology is currently edited by G. Antonides and D. Read
More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Catherine Liu ().