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Self-Employment after Socialism: Intergenerational Links, Entrepreneurial Values, and Human Capital

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  • Michael Fritsch
  • Alina Rusakova

Abstract

Drawing on representative household data from the German Socio-Economic Panel, we examine the role of an early precursor of entrepreneurial development - parental role models - for the individual decision to become self-employed in the post-unified Germany. The findings suggest that the socialist regime significantly damaged this mechanism of an intergenerational transmission of entrepreneurial attitudes among East Germans with a tertiary degree that have experienced a particularly strong ideological indoctrination. However, we find a significant and positive relationship between the presence of a parental role model and the decision to become self-employed for less-educated people. For West Germans the positive relationship holds irrespective of the level of education.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 456.

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Length: 17 p.
Date of creation: 2012
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp456

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Keywords: Entrepreneurship; parental role models; human capital;

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References

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  1. Hall, John & Ludwig, Udo, 1995. "German Unification and the 'Market Adoption' Hypothesis," Cambridge Journal of Economics, Oxford University Press, vol. 19(4), pages 491-507, August.
  2. Marco Caliendo & Frank Fossen & Alexander Kritikos, 2009. "Risk attitudes of nascent entrepreneurs–new evidence from an experimentally validated survey," Small Business Economics, Springer, vol. 32(2), pages 153-167, February.
  3. Alexander S. Kritikos, 2011. "Gründungszuschuss: ein erfolgreiches Instrument steht zur Disposition," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 78(45), pages 16-21.
  4. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  5. Michael Fritsch, 2004. "Entrepreneurship, Entry and Performance of New Businesses Compared in two Growth Regimes: East and West Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-41, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  6. Michael Wyrwich, 2012. "Regional Entrepreneurial Heritage in a Socialist and a Postsocialist Economy," Economic Geography, Clark University, vol. 88(4), pages 423-445, October.
  7. Laspita, Stavroula & Breugst, Nicola & Heblich, Stephan & Patzelt, Holger, 2012. "Intergenerational transmission of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 27(4), pages 414-435.
  8. Fritsch, Michael & Kritikos, Alexander S. & Rusakova, Alina, 2012. "Who Starts a Business and Who is Self-Employed in Germany," IZA Discussion Papers 6326, Institute for the Study of Labor (IZA).
  9. Jennifer Hunt, 2006. "Staunching Emigration from East Germany: Age and the Determinants of Migration," Journal of the European Economic Association, MIT Press, vol. 4(5), pages 1014-1037, 09.
  10. Michael C. Burda & Jennifer Hunt, 2001. "From Reunification to Economic Integration: Productivity and the Labor Market in Eastern Germany," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 1-92.
  11. Michael Wyrwich, 2011. "Regional Entrepreneurial Heritage in a Socialist and Post-socialist Economy," ERSA conference papers ersa10p495, European Regional Science Association.
  12. Stefan Bauernschuster & Oliver Falck & Robert Gold & Stephan Heblich, 2009. "The Shadows of the Past - How Implicit Institutions Influence Entrepreneurship," Jena Economic Research Papers 2009-044, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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Blog mentions

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  1. The imprint of socialism on entrepreneurship
    by Economic Logician in Economic Logic on 2012-07-30 14:23:00
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Cited by:
  1. Michael Fritsch & Elisabeth Bublitz & Alina Rusakova & Michael Wyrwich, 2012. "How Much of a Socialist Legacy? The Reemergence of Entrepreneurship in the East German Transformation to a Market Economy," Jena Economic Research Papers 2012-042, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Michael Wyrwich, 2013. "In the name of my parents: Entrepreneurship and the intergenerational transmission of values," Jena Economic Research Papers 2013-031, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Alina Sorgner & Michael Fritsch, 2013. "Occupational Choice and Self-Employment - Are They Related?," Jena Economic Research Papers 2013-001, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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