Who chooses to become an entrepreneur? The Jacks-of-all-Trades in Social and Human Capital
AbstractThis paper studies willingness to become an entrepreneur depending on an individual’s composition of human and social capital. Our theoretical analysis is an extension of Lazear’s (2005) jack-of-all-trades theory. Our primary implication is that it is not individuals with a higher level of human or social capital but rather individuals with a more balanced portfolio of human and social capital that are more willing than others to become entrepreneurs. We use survey data from a sample of more than 2000 German students to test this hypothesis and find that the jacks-of-all-trades, i.e. the more balanced individuals are more likely to become entrepreneurs. On the other hand, the Masters-in-One, i.e. the specialists, are better off being an employee and rightly prefer to be so.
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Bibliographic InfoPaper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0076.
Length: 37 pages
Date of creation: Feb 2007
Date of revision:
Entrepreneurship; Jack-of-all-trades theory; Social capital;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-09 (All new papers)
- NEP-ENT-2008-02-09 (Entrepreneurship)
- NEP-HRM-2008-02-09 (Human Capital & Human Resource Management)
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