IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00095521.html
   My bibliography  Save this paper

chapter 7 Inferring the Unobserved Human Capital of Entrepreneurs

Author

Listed:
  • Jean Bonnet

    () (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Arnab Bhattacharjee

    (CRIEFF - Centre for Research into Industry, Enterprise, Finance and the Firm - St Andrews)

  • Régis Renault

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique)

  • Nicolas Le Pape

    () (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The goal of the paper by Bhattacharjee et al. is to study the role of labourmarket characteristics in entrepreneurial choice and its impact on the survivalof newly created firms. Their starting point is that, when starting a newbusiness, an entrepreneur's labor market situation (e.g. employed or not –andwhether or not in the preferred sector-) reflects how his human capital maybe valuated through salaried labor, the alternative for entrepreneurship.Hence, Bhattacharjee and coauthors view the labor market situation precedingentrepreneurship as an indicator of the amount of unobserved human capitalpeople have. More in particular, when an individual sets up a firm in the samesector of experience, this may indicate a high average level of unobservedhuman capital due to a lack of depreciation motive. The authors test thehypothesis that an individual's previous labor market situation affects thepredictive value of observed human capital for surviving as an entrepreneur.The results show that the impact of education on the new firm's survival isindeed most pronounced for firms created by individuals salaried in theirpreferred branch of activity while it is rather limited for other entrepreneurs.

Suggested Citation

  • Jean Bonnet & Arnab Bhattacharjee & Régis Renault & Nicolas Le Pape, 2006. "chapter 7 Inferring the Unobserved Human Capital of Entrepreneurs," Post-Print halshs-00095521, HAL.
  • Handle: RePEc:hal:journl:halshs-00095521
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00095521
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00095521. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.