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Entrepreneurship Among Married Couples in the United States: A Simultaneous Probit Approach

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  • Parker, Simon C.

    ()
    (Western University, Canada)

Abstract

This article proposes a simultaneous probit equation framework to analyse the business ownership patterns of married couples in the United States. A structural model of knowledge spillovers within couples is formulated and estimated. Empirical analysis reveals significant and substantial positive interdependence of business ownership propensities within couples. We argue that the evidence is consistent with both male and female spouses receiving positive knowledge transfers from the other. Conversely, there appears to be little support for alternative explanations of interdependent occupational choices based on assortative mating, role model effects, risk diversification, or intrahousehold wealth transfers. We conclude that the conventional practice of ignoring occupational interdependence can generate misleading conclusions about the determinants of business ownership in America.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1712.

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Length: 50 pages
Date of creation: Aug 2005
Date of revision:
Publication status: published in: Labour Economics, 2008, 15 (3), 515-537
Handle: RePEc:iza:izadps:dp1712

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Keywords: family; occupational choice; entrepreneurship; business ownership;

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References

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Citations

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Cited by:
  1. Brown, Sarah & Dietrich, Michael & Ortiz-Nuñez, Aurora & Taylor, Karl, 2011. "Self-employment and attitudes towards risk: Timing and unobserved heterogeneity," Journal of Economic Psychology, Elsevier, vol. 32(3), pages 425-433, June.
  2. Hsieh, Chihmao & Parker, Simon C. & van Praag, Mirjam, 2011. "Risk, Balanced Skills and Entrepreneurship," IZA Discussion Papers 6200, Institute for the Study of Labor (IZA).
  3. Berkay Özcan, 2011. "Only the lonely? The influence of the spouse on the transition to self-employment," Small Business Economics, Springer, vol. 37(4), pages 465-492, November.
  4. Fairlie, Robert W. & Krashinsky, Harry A., 2011. "Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited," Santa Cruz Department of Economics, Working Paper Series qt6hv0m2q6, Department of Economics, UC Santa Cruz.
  5. 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.
  6. World Bank, 2009. "Gender-Based Differences Among Entrepreneurs and Workers in Lebanon," World Bank Other Operational Studies 3164, The World Bank.
  7. Parker, Simon C., 2005. "Entrepreneurship Among Married Couples in the United States: A Simultaneous Probit Approach," IZA Discussion Papers 1712, Institute for the Study of Labor (IZA).
  8. Berkay Özcan, 2011. "Only the lonely?: the influence of spouse on the transition to self-employment," LSE Research Online Documents on Economics 38479, London School of Economics and Political Science, LSE Library.
  9. Frank M. Fossen, 2007. "Risky Earnings, Taxation and Entrepreneurial Choice: A Microeconometric Model for Germany," Discussion Papers of DIW Berlin 705, DIW Berlin, German Institute for Economic Research.
  10. Rijkers, Bob & Costa, Rita, 2012. "Gender and rural non-farm entrepreneurship," Policy Research Working Paper Series 6066, The World Bank.
  11. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
  12. Greene, Francis J. & Han, Liang & Martin, Sean & Zhang, Song & Wittert, Gary, 2014. "Testosterone is associated with self-employment among Australian men," Economics & Human Biology, Elsevier, vol. 13(C), pages 76-84.
  13. Thomas Leoni & Martin Falk, 2010. "Gender and field of study as determinants of self-employment," Small Business Economics, Springer, vol. 34(2), pages 167-185, February.
  14. repec:dgr:uvatin:2011178 is not listed on IDEAS

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