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Social capital and entrepreneurial activity: A pseudo-panel approach

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  • Kim, Byung-Yeon
  • Kang, Youngho

Abstract

This paper uses a pseudo-panel approach at an age-based cohort level to investigate the extent to which social capital accounts for differences in entrepreneurial activities. The findings suggest that trust measured by trust either in strangers or in public institutions facilitates entrepreneurship. We also find that parents’ emphasis on individual achievement relative to interpersonal relations in raising their child is positively associated with entrepreneurship. Evidence suggests that both social norms and networks influence entrepreneurship. These results do not change when we use social capital measured at the national level.

Suggested Citation

  • Kim, Byung-Yeon & Kang, Youngho, 2014. "Social capital and entrepreneurial activity: A pseudo-panel approach," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 47-60.
  • Handle: RePEc:eee:jeborg:v:97:y:2014:i:c:p:47-60
    DOI: 10.1016/j.jebo.2013.10.003
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    Cited by:

    1. Brown, Sarah & Gray, Daniel & McHardy, Jolian & Taylor, Karl, 2015. "Employee trust and workplace performance," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 361-378.
    2. Daniela Ionita & Ionel Dumitru & Mihaela Constantinescu & Stefan Caescu, 2015. "Entrereneurial Clusters in European Union. A Macroeconomic Comparative Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 1-93, February.
    3. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    4. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.

    More about this item

    Keywords

    Entrepreneurship; Social capital; Trust; Pseudo-panel approach;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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