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Entrepreneurship among married couples in the United States: A simultaneous probit approach

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  • Parker, Simon C.

Abstract

This article proposes a simultaneous probit equation framework to analyse the business ownership patterns of married couples in the United States. A structural model of knowledge spillovers within couples is formulated and estimated. Empirical analysis reveals significant and substantial positive interdependence of business ownership propensities within couples. This is consistent with a process in which both male and female spouses receive positive knowledge transfers from the other. Conversely, there is less support for alternative explanations of interdependent occupational choices based on assortative mating, role model effects, risk diversification, or intra-household wealth transfers. I conclude that the conventional practice of ignoring occupational interdependence can generate misleading conclusions about the determinants of business ownership in America.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 3 (June)
Pages: 459-481

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Handle: RePEc:eee:labeco:v:15:y:2008:i:3:p:459-481

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Citations

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Cited by:
  1. Hsieh, Chihmao & Parker, Simon C. & van Praag, Mirjam, 2011. "Risk, Balanced Skills and Entrepreneurship," IZA Discussion Papers 6200, Institute for the Study of Labor (IZA).
  2. repec:dgr:uvatin:2011178 is not listed on IDEAS
  3. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
  4. Rijkers, Bob & Costa, Rita, 2012. "Gender and rural non-farm entrepreneurship," Policy Research Working Paper Series 6066, The World Bank.
  5. Thomas Leoni & Martin Falk, 2010. "Gender and field of study as determinants of self-employment," Small Business Economics, Springer, vol. 34(2), pages 167-185, February.
  6. Fairlie, Robert W. & Krashinsky, Harry A., 2011. "Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited," Santa Cruz Department of Economics, Working Paper Series qt6hv0m2q6, Department of Economics, UC Santa Cruz.
  7. Brown, Sarah & Dietrich, Michael & Ortiz-Nuñez, Aurora & Taylor, Karl, 2011. "Self-employment and attitudes towards risk: Timing and unobserved heterogeneity," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 425-433, June.
  8. World Bank, 2009. "Gender-Based Differences Among Entrepreneurs and Workers in Lebanon," World Bank Other Operational Studies 3164, The World Bank.
  9. Saridakis, George & Marlow, Susan & Storey, David J., 2014. "Do different factors explain male and female self-employment rates?," Journal of Business Venturing, Elsevier, vol. 29(3), pages 345-362.
  10. Berkay Özcan, 2011. "Only the lonely? The influence of the spouse on the transition to self-employment," Small Business Economics, Springer, vol. 37(4), pages 465-492, November.
  11. Greene, Francis J. & Han, Liang & Martin, Sean & Zhang, Song & Wittert, Gary, 2014. "Testosterone is associated with self-employment among Australian men," Economics & Human Biology, Elsevier, vol. 13(C), pages 76-84.
  12. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," SOEPpapers on Multidisciplinary Panel Data Research 29, DIW Berlin, The German Socio-Economic Panel (SOEP).
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  14. Berkay Özcan, 2011. "Only the lonely?: the influence of spouse on the transition to self-employment," LSE Research Online Documents on Economics 38479, London School of Economics and Political Science, LSE Library.
  15. Parker, Simon C., 2008. "Entrepreneurship among married couples in the United States: A simultaneous probit approach," Labour Economics, Elsevier, vol. 15(3), pages 459-481, June.

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