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Occupational Choice and Self-Employment: Are They Related?

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  • Alina Sorgner
  • Michael Fritsch

Abstract

Often, a person will become an entrepreneur only after a period of dependent employment, suggesting that occupational choices precede entrepreneurial choices. We investigate the relationship between occupational choice and self-employment. The findings suggest that the occupational choice of future entrepreneurs at the time of labor market entry is partly guided by a taste for skill variety, the prospect of high. - earnings, and occupational earnings risk. Entrepreneurial intentions may also emerge after gaining work experience in a chosen occupation. We find that occupations characterized by high levels of unemployment and earnings risk, relatively many job opportunities, and high self-employment rates foster the founding of an own business. Also, people who fail to achieve an occupation-specific income have a tendency for selfemployment.

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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 533.

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Length: 40 p.
Date of creation: 2013
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp533

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Keywords: Entrepreneurial choice; occupation-specific determinants of entrepreneurship; risk preferences; taste for variety;

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References

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Citations

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Cited by:
  1. Michael Fritsch & Alina Sorgner, 2013. "Entrepreneurship and Creative Professions - A Micro-Level Analysis," Jena Economic Research Papers 2013-005, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," Jena Economic Research Papers 2013-004, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Simoes, Nadia & Moreira, Sandrina B. & Crespo, Nuno, 2013. "Individual Determinants of Self-Employment Entry – What Do We Really Know?," MPRA Paper 48403, University Library of Munich, Germany.
  4. Klaesson, Johan & Larsson, Johan P, 2014. "Education and Self-employment Propensity," Working Paper Series in Economics and Institutions of Innovation 345, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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