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Identity and Entrepreneurship

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Author Info
Oliver Falck ()
Stephan Heblich ()
Elke Lüdemann ()

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Abstract

We incorporate the concept of social identity into a stylized model of occupational choice and analyze whether an individual’s identity affects his or her decision to become an entrepreneur. We argue that an entrepreneurial identity results from an individual’s socialization. This could be parental influence but, as argued in this paper, also peer influence. To test this empirically, we apply instrumental variable approaches to PISA data. Our findings suggest that having an entrepreneurial peer group has a positive effect on an individual’s entrepreneurial intentions. Regarding entrepreneurial parents, we find a positive effect that cannot only be explained by ownership succession of the family business.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2661.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2661

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Related research
Keywords: occupational choice; entrepreneurship; identity; peer effects;

Other versions of this item:

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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    Other versions:
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  12. Alejandro Gaviria & Steven Raphael, 2001. "School-Based Peer Effects And Juvenile Behavior," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 257-268, May. [Downloadable!] (restricted)
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  13. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
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  15. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2008. "Occupational Choice and Social Contacts Across Regions," Jena Economic Research Papers in Economics 2008-079, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
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  18. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-35, June. [Downloadable!] (restricted)
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  20. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  21. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier. [Downloadable!] (restricted)
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  24. Trogdon, Justin G. & Nonnemaker, James & Pais, Joanne, 2008. "Peer effects in adolescent overweight," Journal of Health Economics, Elsevier, vol. 27(5), pages 1388-1399, September. [Downloadable!] (restricted)
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