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Occupational Choice and Self-Employment - Are They Related?

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  • Alina Sorgner

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Fritsch

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

Often, a person will become an entrepreneur only after a period of dependent employment, suggesting that occupational choices precede entrepreneurial choices. We investigate the relationship between occupational choice and self-employment. The findings suggest that the occupational choice of future entrepreneurs at the time of labor market entry is partly guided by a taste for skill variety, the prospect of high earnings, and occupational earnings risk. Entrepreneurial intentions may also emerge after gaining work experience in a chosen occupation. We find that occupations characterized by high levels of unemployment and earnings risk, relatively many job opportunities, and high self-employment rates foster the founding of an own business. Also, people who fail to achieve an occupation-specific income have a tendency for self-employment.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2013-001.

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Date of creation: 08 Jan 2013
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Handle: RePEc:jrp:jrpwrp:2013-001

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Keywords: Entrepreneurial choice; occupation-specific determinants of entrepreneurship; risk preferences; taste for variety;

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Cited by:
  1. Michael Fritsch & Alina Sorgner, 2013. "Entrepreneurship and Creative Professions: A Micro-Level Analysis," SOEPpapers on Multidisciplinary Panel Data Research 538, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," Jena Economic Research Papers 2013-004, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. 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.

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