Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed

Michael Fritsch () and Alina Sorgner

No 539, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: We argue that entrepreneurial choice proceeds in at least in two steps, with vocational choice nearly always preceding choice of employment status, whether that be self-employment or dependent employment. Since the two decisions are interrelated, analysis of entrepreneurial choice as a single act may lead to inconsistent estimates of the factors that determine the decision to launch a business venture. Our empirical analysis utilizes a bivariate probit model that jointly estimates both decisions. The results support our argument that entrepreneurial choice is a two-stage decision process.

Keywords: Entrepreneurial choice; vocational choice; personality traits (search for similar items in EconPapers)
JEL-codes: D1 J24 L26 (search for similar items in EconPapers)
Pages: 34 p.
Date: 2013
New Economics Papers: this item is included in nep-ent
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Related works:
Working Paper: Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed (2013)
Working Paper: Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp539

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