It's about time: The timing of entrepreneurial experience and the career dynamics of university graduates

Merida, Adrian Luis; Rocha, Vera

doi:10.1016/j.respol.2020.104135

Cited by 36 publications

(27 citation statements)

References 65 publications

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“…We also find that younger and married males with higher income are more likely to report start-up intentions. This finding is in line with Merida and Rocha [ 79 ]; who argue that younger entrepreneurs have lower opportunity costs for entering the business activity and are more willing to take risks.…”

Section: Discussionsupporting

confidence: 90%

“…We argue that in the context of unexpected and unique negative experiences such as the COVID-19 pandemic, resilient individuals may actively look for learning and growing possibilities to cultivate the skills and knowledge that would allow them to engage in entrepreneurial ventures during and after the shock. Entrepreneurs are, in general, good at various skills and invest in a broad range of learning experiences [ 78 , 79 ]. This is in part necessary because entrepreneurs perform many tasks in their business, from accounting and planning to customer relations, human resource management, and others.…”

Section: Conceptual Framework and Hypotheses Developmentmentioning

confidence: 99%

See 1 more Smart Citation

COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity

Otrachshenko

Popova²,

Nikolova³

et al. 2022

Technology in Society

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Section: Discussionsupporting

confidence: 90%

Section: Conceptual Framework and Hypotheses Developmentmentioning

confidence: 99%

COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity

Otrachshenko

Popova²,

Nikolova³

et al. 2022

Technology in Society

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“…Manso (2016) finds that in the United States, the wage discount experienced upon reentry to the wage sector is transitory and disappears quickly. In contrast, Merida and Rocha (2021) find no differential for young entrepreneurs in Denmark but one that is both significant and persistent among older entrepreneurs. Clearly, we have more to learn.…”

Section: Introductionmentioning

confidence: 86%

The long‐term consequences of entrepreneurship: Earnings trajectories of former entrepreneurs

Mahieu

Melillo

Thompson

2021

Strategic Management Journal

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Research Summary Previous literature has documented a large short‐term earnings gap for entrepreneurs that return to the wage sector. Using matched employer–employee data from the Belgian Labor Market & Social Protection Database, we document how this initial gap is remarkably persistent. Former entrepreneurs earn 27% less than propensity‐scored matched controls 5 years after returning to wage work, which is almost unchanged from the short‐term earnings drop. About 60% of this gap results from reductions in hours worked while the remaining 40% is due to reductions in the wage rate. We offer evidence that the decline in hours worked is a choice of former entrepreneurs and therefore reflects a compensating differential, while the decline in the wage rate is a penalty resulting from statistical discrimination by employers. Managerial Summary While previous work recognizes that entrepreneurs experience reduced earnings when they return to the wage sector, little evidence exists about the long‐term consequences of a spell of entrepreneurship. Using detailed administrative data from a large sample of Belgian entrepreneurs and wage employees, we document an earnings gap of about 27% compared with observationally equivalent employees 5 years after returning to wage work. About 60% of this earnings gap results from a reduction in hours worked, and this part appears to be the result of individual choices. The remaining 40% of the earnings gap is due to a decline in the wage rate, and this part appears to be imposed on returning entrepreneurs by employers.

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“…Other studies have regarded the facilitation, teaching or resources that support students' entrepreneurial activities in higher educational institutions (Haneberg and Aaboen, 2020; Pittaway and Cope, 2007; Preedy and Jones, 2015; Rasmussen and Sørheim, 2006). A learning focus has been dominant in the growing number of studies on extracurricular initiatives for student entrepreneurship (Claudia, 2014; Haneberg and Aaboen, 2021; Pittaway et al , 2011), whereas another research focus regards individual student entrepreneurship as a means to an entrepreneurial career as such (Merida and Rocha, 2021; Nabi et al , 2010; Rae and WoodierHarris, 2013). In other words, the student entrepreneurship literature connected to the venture creation context has a narrower scope compared with the general discussions on the contextualisation of entrepreneurship, and many issues remains to be discovered.…”

Section: Setting the Stage For This Special Issuementioning

confidence: 99%