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What a Difference a Y Makes: Female and Male Nascent Entrepreneurs in Germany

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  • Wagner, Joachim

    ()
    (Leuphana University Lüneburg)

Abstract

In western industrialized countries men are on average more than twice as active in entrepreneurship as women. Based on data from a recent representative survey of the adult population in Germany this paper uses an empirical model for the decision to become selfemployed to test for differences between women and men in the ceteris paribus impact of several characteristics and attitudes, taking the rare events nature of becoming an entrepreneur into account. Furthermore, a non-parametric approach using Mahalanobisdistance matching of man and woman which are as similar as possible in all characteristics and attitudes but the "small difference" is used to investigate the difference in the propensity to become self-employed by gender. A core finding is that the difference between men and women in both the extent and the effect of considering fear of failure to be a reason not to start one's own business is important for the explanation of the gender gap in entrepreneurship.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1134.

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Length: 42 pages
Date of creation: May 2004
Date of revision:
Publication status: published in: Small Business Economics, 2007, 28 (1), 1-21
Handle: RePEc:iza:izadps:dp1134

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Keywords: nascent entrepreneurs; gender differences in entrepreneurship; Germany;

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References

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  1. Yannis Georgellis & Howard Wall, 2005. "Gender differences in self-employment," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 321-342.
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  4. Cramer, J. S. & Hartog, J. & Jonker, N. & Van Praag, C. M., 2002. "Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 29-36, May.
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Citations

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Cited by:
  1. Joachim Wagner, 2005. "Nascent and infant entrepreneurs in Germany. Evidence from the Regional Entrepreneurship Monitor (REM)," Labor and Demography 0504010, EconWPA.
  2. Wagner, Joachim, 2005. ""Der Noth gehorchend, nicht dem eignen Trieb" – Nascent Necessity and Opportunity Entrepreneurs in Germany: Evidence from the Regional Entrepreneurship Monitor (REM)," IZA Discussion Papers 1608, Institute for the Study of Labor (IZA).
  3. Backes-Gellner, Uschi & Moog, Petra, 2013. "The disposition to become an entrepreneur and the jacks-of-all-trades in social and human capital," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 55-72.
  4. Wagner, Joachim, 2004. "Nascent Entrepreneurs," IZA Discussion Papers 1293, Institute for the Study of Labor (IZA).
  5. Petra Moog & Uschi Backes-Gellner & Gldem Demirer, 2005. "Arbeitsrechtliche Regulierungen und ihr Einfluss auf Unternehmensgrndungen," Working Papers 0052, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Sep 2005.

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