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Social Capital and the Willingness to Become Self-Employed

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  • Petra Moog
  • Uschi Backes-Gellner

Abstract

This paper employs the concept of "social capital" to empirically investigate the role of social capital in the occupational choice process about whether to become self-employed. We demonstrate that the willingness to become self-employed depends on a person's social capital and hypothesize that women invest differently in social capital than men and therefore exhibit different levels of willingness to become self-employed. We test our hypotheses by using three ordered probit estimates on a data set with 5,000 students. We find that the more social capital an individual obtains, the more willing he or she is to start his or her own business and that women invest less in social capital than men and are thus less willing to become self-employed.

Suggested Citation

  • Petra Moog & Uschi Backes-Gellner, 2009. "Social Capital and the Willingness to Become Self-Employed," International Studies of Management & Organization, Taylor & Francis Journals, vol. 39(2), pages 33-64, January.
    • Handle: RePEc:taf:mimoxx:v:39:y:2009:i:2:p:33-64
    DOI: 10.2753/IMO0020-8825390202
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    Cited by:

    1. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    2. Roberto PATUELLI & Enrico SANTARELLI & Annie TUBADJI, 2020. "Entrepreneurial intention among high-school students: the importance of parents, peers and neighbors," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 225-251, June.
    3. Pham, Tho & Talavera, Oleksandr, 2018. "Discrimination, Social Capital, and Financial Constraints: The Case of Viet Nam," World Development, Elsevier, vol. 102(C), pages 228-242.
    4. Backes-Gellner, Uschi & Moog, Petra, 2013. "The disposition to become an entrepreneur and the jacks-of-all-trades in social and human capital," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 55-72.

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