Self-employment and psychometric measure of risk aversion: a replication and extension

Marko Korhonen, Rauli Svento and Mikko Vaaramo

Applied Economics Letters, 2020, vol. 27, issue 9, 697-702

Abstract: We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might have changed due to increase of females in labour market, endogenous adaptation in risk preferences or because of the self-employment experience itself affects risk preferences. These effects are not significant, either.

Date: 2020
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DOI: 10.1080/13504851.2019.1644429

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