AbstractWhereas most start-ups are in low-tech industries, we apply a novel strategy to a data set of scientists and engineers to focus predominantly on high-tech entrepreneurs. We develop a simple model in which the rewards from entrepreneurship are determined by the interaction of ability, the quality of the entrepreneurial idea, and experience in employment. As is consistent with the model, we find that the average return to entrepreneurship is positive, higher paid workers are more likely to become entrepreneurs, especially at younger ages, and greater pre-entry labor market experience is associated with longer tenure but lower earnings in entrepreneurship.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal The Journal of Law and Economics.
Volume (Year): 55 (2012)
Issue (Month): 4 ()
Pages: 869 - 900
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Web page: http://www.journals.uchicago.edu/JLE/
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- Åstebro, Thomas & Chen, Jing, 2014. "The entrepreneurial earnings puzzle: Mismeasurement or real?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 88-105.
- Braguinsky, Serguey & Honjo, Yuji & Nagaoka, Sadao & Nakamura, Kenta, 2010.
"Science-Based Business : Knowledge Capital or Entrepreneurial Ability? : Theory and Evidence from a Survey of Biotechnology Start-ups,"
IIR Working Paper
10-05, Institute of Innovation Research, Hitotsubashi University.
- Yuji Honjo & Sadao Nagaoka & Kenta Nakamura & Serguey Braguinsky, 2011. "Science-Based Business: Knowledge Capital or Entrepreneurial Ability? Theory and Evidence from a Survey of Biotechnology Start-ups," 2011 Meeting Papers 1270, Society for Economic Dynamics.
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