Risk, Balanced Skills and Entrepreneurship

Chihmao Hsieh (), Simon Parker () and Mirjam Praag
Additional contact information
Chihmao Hsieh: University of Amsterdam

No 6200, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated mixed evidence about the effects of risk aversion on selection into entrepreneurship.

Keywords: entrepreneurship; jack-of-all-trades; risk; human capital; occupational choice (search for similar items in EconPapers)
JEL-codes: D81 J24 L26 M13 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-12
New Economics Papers: this item is included in nep-ent and nep-hrm
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://docs.iza.org/dp6200.pdf (application/pdf)

Related works:
Journal Article: Risk, balanced skills and entrepreneurship (2017)
Working Paper: Risk, Balanced Skills and Entrepreneurship (2011)
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:iza:izadps:dp6200

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().