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Who creates jobs in transition economies? The role of entrepreneurial risk preferences

Author

Listed:
  • Muzaffarjon Ahunov

    (Endicott College of International Studies)

  • Dilnovoz Abdurazzakova

    (Westminster International University in Tashkent)

  • Nurmukhammad Yusupov

    (Solbridge International School of Business)

Abstract

Entrepreneurs create jobs, but hiring outsiders is a risky decision. In this paper, using a large cross-country survey data, we find that more risk-tolerant entrepreneurs indeed tend to hire outside labor. However, the relationship between risk tolerance and likelihood of hiring appears to be non-monotonic in transition economies. We offer both demand and supply side explanations for this result, which has important policy implications.

Suggested Citation

  • Muzaffarjon Ahunov & Dilnovoz Abdurazzakova & Nurmukhammad Yusupov, 2019. "Who creates jobs in transition economies? The role of entrepreneurial risk preferences," Economics Bulletin, AccessEcon, vol. 39(3), pages 1876-1886.
    • Handle: RePEc:ebl:ecbull:eb-19-00167
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    entrepreneurs; risk preferences; demand for labor; hiring;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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