Are Nascent Entrepreneurs Jacks-of-All-Trades? A Test of Lazear's Theory of Entrepreneurship with German Data
AbstractIn a recent paper Edward Lazear proposed the jack-of-all-trades view of entrepreneurship. Based on a coherent model of the choice between self-employment and paid employment he shows that having a background in a large number of different roles increases the probability of becoming an entrepreneur. The intuition behind this proposition is that entrepreneurs must have sufficient knowledge in a variety of areas to put together the many ingredients needed for survival and success in a business, while for paid employees it suffices and pays to be a specialist in the field demanded by the job taken. This paper contributes to the entrepreneurship literature by empirically testing Lazear's hypothesis using a large recent representative sample of the German population. The empirical estimation takes the rare events nature of becoming a nascent entrepreneur and the regional stratification of the sample into account. The results illustrate the statistical significance and economic importance of the jack-of-all-trades theory.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 911.
Length: 18 pages
Date of creation: Oct 2003
Date of revision:
Publication status: published in: Applied Economics, 2006, 38 (20), 2415-2419
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Other versions of this item:
- Joachim Wagner, 2006. "Are nascent entrepreneurs 'Jacks-of-all-trades'? A test of Lazear's theory of entrepreneurship with German data," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(20), pages 2415-2419.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-11-03 (All new papers)
- NEP-ENT-2003-11-09 (Entrepreneurship)
- NEP-GEO-2003-11-03 (Economic Geography)
- NEP-MFD-2003-11-03 (Microfinance)
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.:
- King, Gary & Zeng, Langche, 2001. "Explaining Rare Events in International Relations," International Organization, Cambridge University Press, Cambridge University Press, vol. 55(03), pages 693-715, June.
- Lazear, Edward, 2003. "Entrepreneurship," IZA Discussion Papers 760, Institute for the Study of Labor (IZA).
- J. Wagner, 2003.
"Testing Lazear's jack-of-all-trades view of entrepreneurship with German micro data,"
Applied Economics Letters, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 10(11), pages 687-689.
- Wagner, Joachim, 2002. "Testing Lazear’s Jack-of-All-Trades View of Entrepreneurship with German Micro Data," IZA Discussion Papers 592, Institute for the Study of Labor (IZA).
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