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Are Nonprofit Entrepreneurs Also “Jacks-Of-All-Trades�

  • Cho, In Soo
  • Orazem, Peter

In Lazear (2005)’s model of entrepreneurship, individuals with more diverse academic and occupational training are more likely to become entrepreneurs, while more narrowly trained individuals become employees. We examine whether Lazear’s model can also explain which individuals become nonprofit entrepreneurs. Information on successive cohorts of college graduates from a single university from 1982-2006 show that observed diversity of academic and occupational skills increases the probability of nonprofit sector entrepreneurship, consistent with previous findings of for-profit entrepreneurs. In addition, unobservable talents that increase probability of for-profit start-ups are positively correlated with the unobservable skills that lead to nonprofit start-ups, consistent with a presumed entrepreneurial skill that underlies the Lazear’s Jacks-of-All-Trades model.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 35750.

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Date of creation: 10 Jan 2013
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Publication status: Published in IZA Journal of Labor Economics, July 2014, vol. 3 no. 4, pp. 1-15
Handle: RePEc:isu:genres:35750
Contact details of provider: Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
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Web page: http://www.econ.iastate.edu
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  1. David Easley & Maureen O'Hara, 1983. "The Economic Role of the Nonprofit Firm," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 531-538, Autumn.
  2. Stuetzer, Michael & Obschonka, Martin & Schmitt-Rodermund, Eva, 2012. "Balanced skills among nascent entrepreneurs," MPRA Paper 37524, University Library of Munich, Germany.
  3. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
  4. Holtmann, A G, 1983. "A Theory of Non-Profit Firms," Economica, London School of Economics and Political Science, vol. 50(200), pages 439-49, November.
  5. H. Naci Mocan & Erdal Tekin, 2000. "Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers," NBER Working Papers 7977, National Bureau of Economic Research, Inc.
  6. Susan Rose-Ackerman, 1996. "Altruism, Nonprofits, and Economic Theory," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 701-728, June.
  7. Uschi Backes-Gellner & Petra Moog, 2007. "Who chooses to become an entrepreneur? The Jacks-of-all-Trades in Social and Human Capital," Working Papers 0076, University of Zurich, Institute for Strategy and Business Economics (ISU).
  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 563-79, August.
  9. Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
  10. Sloan, Frank A. & Picone, Gabriel A. & Taylor, Donald H., Jr. & Chou, Shin-Yi, 2000. "Hospital Ownership and Cost and Quality of Care: Is There a Dime's Worth of Difference?," Working Papers 00-11, Duke University, Department of Economics.
  11. Chillemi, Ottorino & Gui, Benedetto, 1991. "Uninformed customers and nonprofit organization : Modelling 'contract failure' theory," Economics Letters, Elsevier, vol. 35(1), pages 5-8, January.
  12. Åstebro, Thomas & Thompson, Peter, 2011. "Entrepreneurs, Jacks of all trades or Hobos?," Research Policy, Elsevier, vol. 40(5), pages 637-649, June.
  13. Preston, Anne E, 1988. "The Nonprofit Firm: A Potential Solution to Inherent Market Failures," Economic Inquiry, Western Economic Association International, vol. 26(3), pages 493-506, July.
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