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Running in the family: parental role models in entrepreneurship

Author

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  • Anders Hoffmann

    ()

  • Martin Junge

    ()

  • Nikolaj Malchow-Møller

    ()

Abstract

It is well established that children of self-employed parents are more likely to become self-employed themselves, but the reasons are still hotly debated. Using Danish register data, we investigate the importance and workings of parental role models for the probability of becoming self-employed. We find that the effect of a self-employed father (mother) is much higher for males (females). These results are statistically and economically very significant, and they survive when we control for parental wealth and work experience from the parents’ firms and when we exclude cases where the offspring takes over the family business. This points to a strong role for parental role models in explaining why self-employment runs in the family. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Anders Hoffmann & Martin Junge & Nikolaj Malchow-Møller, 2015. "Running in the family: parental role models in entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 79-104, January.
  • Handle: RePEc:kap:sbusec:v:44:y:2015:i:1:p:79-104
    DOI: 10.1007/s11187-014-9586-0
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    References listed on IDEAS

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    1. Robert W. Fairlie & Alicia Robb, 2007. "Families, Human Capital, and Small Business: Evidence from the Characteristics of Business Owners Survey," ILR Review, Cornell University, ILR School, vol. 60(2), pages 225-245, January.
    2. Bosma, Niels & Hessels, Jolanda & Schutjens, Veronique & Praag, Mirjam Van & Verheul, Ingrid, 2012. "Entrepreneurship and role models," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 410-424.
    3. Michael Hout & Harvey Rosen, 2000. "Self-Employment, Family Background, and Race," Journal of Human Resources, University of Wisconsin Press, vol. 35(4), pages 670-692.
    4. Matthew J. Lindquist & Joeri Sol & Mirjam Van Praag, 2015. "Why Do Entrepreneurial Parents Have Entrepreneurial Children?," Journal of Labor Economics, University of Chicago Press, vol. 33(2), pages 269-296.
    5. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    6. Yannis Georgellis & Howard Wall, 2005. "Gender differences in self-employment," International Review of Applied Economics, Taylor & Francis Journals, vol. 19(3), pages 321-342.
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    8. Bernard F. Lentz & David N. Laband, 1990. "Entrepreneurial Success and Occupational Inheritance among Proprietors," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 563-579, August.
    9. Ingrid Verheul & André Van Stel & Roy Thurik, 2006. "Explaining female and male entrepreneurship at the country level," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(2), pages 151-183, March.
    10. Nicolaou, Nicos & Shane, Scott, 2009. "Can genetic factors influence the likelihood of engaging in entrepreneurial activity?," Journal of Business Venturing, Elsevier, vol. 24(1), pages 1-22, January.
    11. Simone Chlosta & Holger Patzelt & Sabine Klein & Christian Dormann, 2012. "Parental role models and the decision to become self-employed: The moderating effect of personality," Small Business Economics, Springer, vol. 38(1), pages 121-138, January.
    12. Laspita, Stavroula & Breugst, Nicola & Heblich, Stephan & Patzelt, Holger, 2012. "Intergenerational transmission of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 27(4), pages 414-435.
    13. Lina Andersson & Mats Hammarstedt, 2011. "Transmission of self-employment across immigrant generations: the importance of ethnic background and gender," Review of Economics of the Household, Springer, vol. 9(4), pages 555-577, December.
    14. Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
    15. Morten Bennedsen & Kasper Meisner Nielsen & Francisco Perez-Gonzalez & Daniel Wolfenzon, 2007. "Inside the Family Firm: The Role of Families in Succession Decisions and Performance," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 647-691.
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    Citations

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    Cited by:

    1. Kay, Rosemarie & Schlömer-Laufen, Nadine, 2016. "Gender diversity in top-management positions in large family and nonfamily businesses," Working Papers 02/16, Institut für Mittelstandsforschung (IfM) Bonn.
    2. repec:wsi:ijimxx:v:21:y:2017:i:07:n:s1363919617500542 is not listed on IDEAS
    3. Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam C. & Vladasel, Theodor, 2016. "On the Origins of Entrepreneurship: Evidence from Sibling Correlations," IZA Discussion Papers 10278, Institute for the Study of Labor (IZA).
    4. repec:eee:tefoso:v:123:y:2017:i:c:p:271-282 is not listed on IDEAS
    5. Ingrid Verheul & Joern Block & Katrin Burmeister-Lamp & Roy Thurik & Henning Tiemeier & Roxana Turturea, 2015. "ADHD-like behavior and entrepreneurial intentions," Small Business Economics, Springer, vol. 45(1), pages 85-101, June.
    6. Vera Rocha & Mirjam van Praag, 2016. "How do Entrepreneurial Bosses influence their Employees' Future Entrepreneurship Choices?," Tinbergen Institute Discussion Papers 16-110/VII, Tinbergen Institute.
    7. repec:kap:sbusec:v:49:y:2017:i:4:d:10.1007_s11187-017-9854-x is not listed on IDEAS
    8. repec:eee:fambus:v:8:y:2017:i:4:p:200-212 is not listed on IDEAS

    More about this item

    Keywords

    Entrepreneurship; Self-employment; Role models; Parents; Social-learning theory; J24; J62; L26;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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