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Risk, Balanced Skills and Entrepreneurship

Chihmao Hsieh (), Simon Parker () and Mirjam Praag
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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
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Related works:
Journal Article: Risk, balanced skills and entrepreneurship (2017) Downloads
Working Paper: Risk, Balanced Skills and Entrepreneurship (2011) Downloads
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