Which firms do the entrepreneurs come from?
Entrepreneurs who found new firms tend to work as employees in small rather than large firms prior to start-up and have previous experience of entrepreneurship. We provide a model of self-selection based on heterogeneous risk preferences which can explain these stylized facts.
Volume (Year): 10 (2007)
Issue (Month): 10 ()
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- Sarah Brown & Lisa Farrell & Mark N. Harris & John G. Sessions, 2006.
"Risk preference and employment contract type,"
Journal of the Royal Statistical Society Series A,
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