Occupational Choice and Social Contacts Across Regions
AbstractThis paper tests the importance of social contacts on entrepreneurship. To measure differences in the interconnectedness of social contacts, we compare rural and agglomerated areas. A smaller community size in rural areas generates greater network closure. Agents' neighborhoods are more likely to overlap, which intensifies social contacts and thus facilitates resource mobilization. Analyzing the impact of social contacts across regions, we find that greater network closure increases the likelihood of being an entrepreneur by 1.9 to 14.2 percentage points, depending on the number of underlying social contacts. These results remain robust after applying matching techniques and concentrating on young entrepreneurs.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-079.
Date of creation: 30 Oct 2008
Date of revision:
Occupational Choice; Entrepreneurship; Social Contacts;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-28 (All new papers)
- NEP-ENT-2008-10-28 (Entrepreneurship)
- NEP-GEO-2008-10-28 (Economic Geography)
- NEP-HRM-2008-10-28 (Human Capital & Human Resource Management)
- NEP-SOC-2008-10-28 (Social Norms & Social Capital)
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- Oliver Falck & Stephan Heblich & Elke Luedemann, 2012.
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