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Entrepreneurial Couples

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  • Michael S. Dahl

    (Aalborg University, Denmark)

  • Mirjam van Praag

    (Copenhagen Business School, Denmark)

  • Peter Thompson

    (Emory University, United States)

Abstract

We study possible motivations for co-entrepenurial couples to start up a joint firm, using a sample of 1,069 Danish couples that established a joint enterprise between 2001 and 2010. We compare their pre-entry characteristics, firm performance and postdissolution private and financial outcomes with a selected set of comparable firms and couples. We find evidence that couples often establish a business together because one spouse – most commonly the female – has limited outside opportunities in the labor market. However, the financial benefits for each of the spouses, and especially the female, are larger in co-entrepreneurial firms, both during the life of the business and post-dissolution. The start-up of co-entrepreneurial firms seems therefore a sound investment in the human capital of both spouses as well as in the reduction of income inequality in the household. We find no evidence of non-pecuniary benefits or costs of coentrepreneurship

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 14-055/V.

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Date of creation: 08 May 2014
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Handle: RePEc:dgr:uvatin:20140055

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Web page: http://www.tinbergen.nl

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Keywords: Entrepreneurship; motives; performance; couples; co-entrepreneurship.;

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