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Personality and self-employment: A journey into the craft's way of doing business

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  • Runst, Petrik
  • Thomä, Jörg

Abstract

The renewed scholarly interest in the craft-based mode of competition, work, learning and innovation suggests that there are some unique aspects of the craft's way of doing business. Using a large panel data set, the present paper takes a closer look at this issue by examining the personality characteristics of business owners. Our results confirm that an individual's personality affects the likelihood of self-employment, but certain traits have a different effect in the case of crafts vis-à-vis non-crafts. We interpret this as evidence for the specificity of the 'crafts' at the fundamental level of human personality. Thus, personality traits can influence self-employment decisions differently, depending on the sector or field of entrepreneurship. The paper concludes with implications for policy and research.

Suggested Citation

  • Runst, Petrik & Thomä, Jörg, 2023. "Personality and self-employment: A journey into the craft's way of doing business," ifh Working Papers 38/2023, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2023.
    • Handle: RePEc:zbw:ifhwps:382022
    as

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    File URL: https://www.econstor.eu/bitstream/10419/270882/1/ifh-wp38-2022update.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Crafts; Self-employment; Personality; crafts entrepreneurship; craftsmanship;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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