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Entrepreneurship: Origins and Returns

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Author Info
Berglann, Helge () (Norwegian Agricultural Economics Research Institute (NILF))
Moen, Espen R. () (Norwegian School of Management (BI))
Roed, Knut () (Ragnar Frisch Centre for Economic Research)
Skogstrøm, Jens Fredrik () (Ragnar Frisch Centre for Economic Research)

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Abstract

We examine the origins and outcome of entrepreneurship on the basis of exceptionally comprehensive Norwegian matched worker-firm-owner data. In contrast to most existing studies, our notion of entrepreneurship not only comprises self-employment, but also employment in partly self-owned limited liability firms. Based on this extended entrepreneurship concept, we find that entrepreneurship tends to be profitable. It also raises income uncertainty, but the most successful quartile gains much more than the least successful quartile loses. Key determinants of the decision to become an entrepreneur are occupational qualifications, family resources, gender, and work environments. Individual unemployment encourages, while aggregate unemployment discourages entrepreneurship.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4250.

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Length: 34 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4250

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Related research
Keywords: entrepreneurship; self-employment; spin-offs;

Other versions of this item:

Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

This paper has been announced in the following NEP Reports:

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.:
  1. Ari Hyytinen & Mika Maliranta, 2008. "When Do Employees Leave Their Job for Entrepreneurship?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 110(1), pages 1-21, 03. [Downloadable!] (restricted)
  2. Bernt Bratsberg & Oddbjørn Raaum & Knut Røed, 2007. "When Minority Labor Migrants Meet the Welfare State," IZA Discussion Papers 2872, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Enrico Santarelli & Marco Vivarelli, 2006. "Entrepreneurship and the Process of Firms’ Entry, Survival and Growth," IZA Discussion Papers 2475, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-30.

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