Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism

Cramer, Jacqueline; Hartog, Joop; Jonker, Nicole; Praag, C. Mirjam van

doi:10.1016/s0167-2681(01)00222-0

Cited by 427 publications

(300 citation statements)

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“…Confirmatory evidence from randomly sampled survey populations, in contrast, almost exclusively involves studies comparing self-employed individuals with those who report that they have never been self-employed, but they overlook the more narrowly defined category of Management Science 59(7), pp. 1671-1687, © 2013 entrepreneurs whose firms actually employ wagelabor (Van Praag and Cramer 2001, Uusitalo 2001, Cramer et al 2002, Caliendo et al 2010. Moreover, recent attempts to compare randomly sampled populations of entrepreneurs and nonentrepreneurs have produced mixed results (Djankov et al 2006(Djankov et al , 2007 both studies use a comparable survey instrument).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurs Under Uncertainty: An Economic Experiment in China

Holm¹,

Opper²,

2013

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T his study reports findings from the first large-scale experiment investigating whether entrepreneurs differ from other people in their willingness to expose themselves to various forms of uncertainty. A stratified random sample of 700 chief executive officers from the Yangzi delta region in China is compared to 200 control group members. Our findings suggest that in economic decisions, entrepreneurs are more willing to accept strategic uncertainty related to multilateral competition and trust. However, entrepreneurs do not differ from ordinary people when it comes to nonstrategic forms of uncertainty, such as risk and ambiguity.

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Section: Introductionmentioning

confidence: 99%

Entrepreneurs Under Uncertainty: An Economic Experiment in China

Holm¹,

Opper²,

2013

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“…Previous research supports this judgment insofar as positive correlations between risk tolerance and the decision to become an entrepreneur were observed (see, e.g., Cramer, Hartog, Jonker, and Van Praag, 2002;Caliendo, Fossen, and Kritikos, 2009). It is also true that entrepreneurs are less risk averse than other persons, such as those who are regularly employed (Stewart and Roth, 2001;Hartog, Ferrer-i Carbonell, and Jonker, 2002).…”

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confidence: 76%

Searching for the entrepreneurial personality: New evidence and avenues for further research

Caliendo

Kritikos²

2012

Journal of Economic Psychology

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“…We control for the socio-demographic variables of age and gender, which is commonly used for self-employment study (Grilo and Thurik 2008;Johansson 2000). We also control for general trust in people and institutions, and risk acceptance, as previous studies found that they are positively associated with probability of being selfemployed (Andriani 2015;Cramer et al 2002;Hamilton 2000;Nakhaie et al 2009). Finally, we control for country fixed effects by including the dummy variables fo r countries into regression models.…”

Section: Methodsmentioning

confidence: 99%

What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations

Habibov

Afandi²,

Cheung

2016

Int Entrep Manag J

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We used a high-quality cross-sectional data set that covers a diverse set of 29 transitional countries, to find the effect of education of probability of people being selfemployed using standard probit models and instrumental variable biprobit that address endogeneity. Our findings suggest a negative effect of university education on the propensity of being self-employed. This finding remains the same for the single-stage model (i.e. standard probit) and the instrumental variable model (i.e. biprobit). We found strong endogeneity in the estimation of education effect on the propensity of being self-employed, ignoring which renders estimations biased. Regression models, which do not address endogeneity tend to underestimate the negative effect of the education on the probability of being self-employed in the countries of transition. Researchers should use alternative approaches to reduce endogeneity, such as instrumental variables and longitudinal analysis.

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Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism

Cited by 427 publications

References 5 publications

Entrepreneurs Under Uncertainty: An Economic Experiment in China

Entrepreneurs Under Uncertainty: An Economic Experiment in China

Searching for the entrepreneurial personality: New evidence and avenues for further research

What is the effect of university education on chances to be self-employed in transitional countries?: Instrumental variable analysis of cross-sectional sample of 29 nations

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