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Entrepreneurial spillovers across coworkers

Author

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  • Wallskog, Melanie

Abstract

How do workplace social connections shape everyday entrepreneurship? Using comprehensive data on millions of American workers across the economy, I find three key patterns. First, entrepreneurial coworkers inspire and teach entrepreneurship: individuals are more likely to become entrepreneurs after working with coworkers who previously led young businesses. Second, these effects predominantly occur within demographic groups, perpetuating lower entrepreneurship rates for women and Black Americans. Third, these workplace spillovers can increase productivity: individuals exposed to relatively successful coworkers subsequently run successful companies too.

Suggested Citation

  • Wallskog, Melanie, 2025. "Entrepreneurial spillovers across coworkers," Journal of Financial Economics, Elsevier, vol. 170(C).
  • Handle: RePEc:eee:jfinec:v:170:y:2025:i:c:s0304405x25000856
    DOI: 10.1016/j.jfineco.2025.104077
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    More about this item

    Keywords

    Entrepreneurship; Entrepreneurial Finance; Labor and Finance;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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