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Social Capital and the Willingness to Become Self-Employed

Petra Moog and Uschi Backes-Gellner

International Studies of Management & Organization, 2009, vol. 39, issue 2, 33-64

Abstract: This paper employs the concept of "social capital" to empirically investigate the role of social capital in the occupational choice process about whether to become self-employed. We demonstrate that the willingness to become self-employed depends on a person's social capital and hypothesize that women invest differently in social capital than men and therefore exhibit different levels of willingness to become self-employed. We test our hypotheses by using three ordered probit estimates on a data set with 5,000 students. We find that the more social capital an individual obtains, the more willing he or she is to start his or her own business and that women invest less in social capital than men and are thus less willing to become self-employed.

Date: 2009
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DOI: 10.2753/IMO0020-8825390202

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