Digital exposure, age, and entrepreneurship

Ting Zhang (), Roger Stough () and Dan Gerlowski ()
Additional contact information
Ting Zhang: University of Baltimore
Roger Stough: George Mason University
Dan Gerlowski: University of Baltimore

The Annals of Regional Science, 2022, vol. 69, issue 3, No 5, 633-681

Abstract: Abstract This study focuses on age and digital exposure as factors driving individuals to be (1) employees or entrepreneurs, (2) full-time or part-time, or (3) opportunity or necessity entrepreneurs. It extends occupational choice models, relying on a utility maximization framework, to entrepreneur types incorporating age and digital exposure effects. Using 132 months of Current Population Survey data and multilevel modelling with individuals’ fixed effects and metropolitan area random effects, the study finds that (1) workers with low- and high- digital exposure are more likely to become entrepreneurs than peers with medium digital exposure, mirroring digitization’s “push” and “pull” mechanisms on entrepreneurship; (2) age strengthens digitization’s “pull” mechanism to be entrepreneurs (versus employees) and opportunity (versus necessity) entrepreneurs; (3) digital exposure has a weak marginal potential to increase workers’ odds to be part-time (versus full-time) entrepreneurs. The study also notes the importance of location and concludes with discussion and implications.

JEL-codes: J24 L26 O33 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00168-022-01130-0

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