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Identity and Entrepreneurship

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  • Oliver Falck
  • Stephan Heblich
  • Elke Lüdemann

Abstract

We incorporate the concept of social identity into a stylized model of occupational choice and analyze whether an individual’s identity affects his or her decision to become an entrepreneur. We argue that an entrepreneurial identity results from an individual’s socialization. This could be parental influence but, as argued in this paper, also peer influence. To test this empirically, we apply instrumental variable approaches to PISA data. Our findings suggest that having an entrepreneurial peer group has a positive effect on an individual’s entrepreneurial intentions. Regarding entrepreneurial parents, we find a positive effect that cannot only be explained by ownership succession of the family business.

Suggested Citation

  • Oliver Falck & Stephan Heblich & Elke Lüdemann, 2009. "Identity and Entrepreneurship," CESifo Working Paper Series 2661, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2661
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Elke Lüdemann, 2011. "Schooling and the Formation of Cognitive and Non-cognitive Outcomes," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 39, June.
    2. van Praag, Mirjam C., 2009. "Who Values the Status of the Entrepreneur?," IZA Discussion Papers 4245, Institute for the Study of Labor (IZA).
    3. Oliver Falck & Robert Gold & Stephan Heblich, 2017. "Lifting the iron curtain: school-age education and entrepreneurial intentions," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1111-1148.
    4. Michael Funke & Marc Gronwald, 2009. "A Convex Hull Approach to Counterfactual Analysis of Trade Openness and Growth," CESifo Working Paper Series 2692, CESifo Group Munich.
    5. Robert Gold & Oliver Falck & Stephan Heblich, 2011. "The Long Wind of Change. Educational Impacts on Entrepreneurial Intentions," ERSA conference papers ersa11p999, European Regional Science Association.
    6. Robert Gold & Oliver Falck & Stephan Heblich, 2011. "Entrepreneurship Education: The Role of Universities," ERSA conference papers ersa10p1202, European Regional Science Association.
    7. 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.
    8. Michael Stuetzer & Martin Obschonka & Eva Schmitt-Rodermund, 2013. "Balanced skills among nascent entrepreneurs," Small Business Economics, Springer, vol. 41(1), pages 93-114, June.
    9. Larsson, Johan P & Wennberg, Karl & Wiklund, Johan & Wright, Mike, 2017. "Location Choices of Graduate Entrepreneurs," Ratio Working Papers 290, The Ratio Institute.

    More about this item

    Keywords

    occupational choice; entrepreneurship; identity; peer effects;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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