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Explaining Preferences and Actual Involvement in Self-Employment: New Insights into the Role of Gender

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  • Verheul, I.
  • Thurik, A.R.
  • Grilo, I.

Abstract

This paper investigates why women’s self-employment rates are consistently lower than those of men. It has three focal points. It discriminates between the preference for self-employment and actual involvement in self-employment using a two (probit) equation model. It makes a systematic distinction between different ways in which gender influences the preference for and actual involvement in self-employment (mediation and moderation). It includes perceived ability as a potential driver of self-employment next to risk attitude, self-employed parents and other socio-demographic drivers. A representative data set of more than 8,000 individuals from 29 countries (25 EU member states, US, Norway, Iceland and Liechtenstein) is used (the 2004 Flash Eurobarometer survey). The findings show that women’s lower preference for becoming self-employed plays an important role in explaining their lower involvement in self-employment and that a gender effect remains that may point at gender-based obstacles to entrepreneurship.

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Bibliographic Info

Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam in its series ERIM Report Series Research in Management with number ERS-2008-003-ORG.

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Date of creation: 28 Jan 2008
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Handle: RePEc:ems:eureri:10979

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Postal: RSM Erasmus University & Erasmus School of Economics, PoBox 1738, 3000 DR Rotterdam
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Keywords: determinants of entrepreneurship; gender; latent & nascent entrepreneurship;

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References

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  1. Riding, Allan L. & Swift, Catherine S., 1990. "Women business owners and terms of credit: Some empirical findings of the Canadian experience," Journal of Business Venturing, Elsevier, vol. 5(5), pages 327-340, September.
  2. A. Roy Thurik & Martin A. Carree & Andre van Stel & David B. Audretsch, 2007. "Does Self-Employment reduce Unemployment?," Jena Economic Research Papers 2007-089, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. 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.
  4. Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, 02.
  5. Roy Thurik & Isabel Grilo & Peter van der Zwan, 2006. "The entrepreneurial ladder and its determinants," Scales Research Reports H200620, EIM Business and Policy Research.
  6. Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away From Competition? Do Men Compete Too Much?," NBER Working Papers 11474, National Bureau of Economic Research, Inc.
  7. Ingrid Verheul & Lorraine Uhlaner & Roy Thurik, 2004. "Business Accomplishments, Gender And Entrepreneurial Self-Image," Papers on Entrepreneurship, Growth and Public Policy 2004-10, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  8. Burke, Andrew E & FitzRoy, Felix R & Nolan, Michael A, 2002. " Self-Employment Wealth and Job Creation: The Roles of Gender, Non-pecuniary Motivation and Entrepreneurial Ability," Small Business Economics, Springer, vol. 19(3), pages 255-70, November.
  9. Marco van Gelderen & Niels Bosma & Roy Thurik, 2003. "Success and risk factors in the pre-startup phase," Scales Research Reports N200314, EIM Business and Policy Research.
  10. John O. Ogbor, 2000. "Mythicizing and Reification in Entrepreneurial Discourse: Ideology-Critique of Entrepreneurial Studies," Journal of Management Studies, Wiley Blackwell, vol. 37(5), pages 605-635, 07.
  11. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
  12. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
  13. Michael Hout & Harvey S. Rosen, 1999. "Self-Employment, Family Background, and Race," NBER Working Papers 7344, National Bureau of Economic Research, Inc.
  14. Van Praag, C Mirjam & Van Ophem, Hans, 1995. "Determinants of Willingness and Opportunity to Start as an Entrepreneur," Kyklos, Wiley Blackwell, vol. 48(4), pages 513-40.
  15. Frederic Delmar & Per Davidsson, 2000. "Where do they come from? Prevalence and characteristics of nascent entrepreneurs," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(1), pages 1-23, January.
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Cited by:
  1. Dawson, Christopher & Henley, Andrew, 2012. "Gender, Risk and Venture Creation Intentions," IZA Discussion Papers 6947, Institute for the Study of Labor (IZA).
  2. Andersson Joona, Pernilla & Wadensjö, Eskil, 2008. "A Gender Perspective on Self-Employment Entry and Performance as Self-Employed," IZA Discussion Papers 3581, Institute for the Study of Labor (IZA).

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