Entrepreneurial Career Paths: Occupational Environments and the Propensity to Become Self-Employed

Alina Sorgner and Michael Fritsch ()

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We investigate the relationship between characteristics of an occupation-specific environment and the decision of employees to start an own business. A relatively high occupation-specific unemployment risk and high earnings risk are conducive to opt for self-employment. Also, occupations that are characterized by high self-employment rates foster entrepreneurial choice among their employees. The results suggest that career choices of future entrepreneurs are driven by different motivations than those of non-entrepreneurs. In particular, the expectation of a pronounced financial gain is critical for future entrepreneurs when they make their initial occupational choices in paid employment and it is also relevant for a self-employment choice. We also find that when future entrepreneurs enter the labor market they are more likely to choose occupations that require a relatively high variety of skills. Moreover, such occupations may promote entrepreneurship among their employees.

Keywords: entrepreneurial choice; occupation-specific determinants of entrepreneurship; unemployment risk; earnings risk; skill variety (search for similar items in EconPapers)
JEL-codes: D01 J24 L26 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:234990

DOI: 10.1007/s11187-017-9917-z

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