We use a simple model to analyze the founding stage of new firms. Our goal is to characterize the directional causality between the expected rewards from entrepreneurship and the length of prior labor market experience that entrepreneurs possess. We test predictions about the timing of the formation of new firms on a sample of Italian entrepreneurs who founded new firms in the period 1992-2004. We obtain three main results. First, the timing of the foundation of new firms is determined primarily by the expectation of higher income and not so much by the perception of risk. Second, earlier experience of entrepreneurs in full time employment has a positive impact on the size of newly founded firms. Third, when we separate founders who work alone from founders who work with family partners, we find that the latter establish and control larger firms.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number
32-2006.
Length: 23 pages Date of creation: Jul 2006 Date of revision: Handle: RePEc:icr:wpicer:32-2006
Contact details of provider: Postal: Viale Settimio Severo, 63 - 10133 Torino - Italy Phone: +39 011 6604828 Fax: +39 011 6600082 Email: Web page: http://www.icer.it More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Alessandra Calosso).
Related research
Keywords:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.