Are Nonprofit Entrepreneurs Also â€œJacks-Of-All-Tradesâ€?
In Lazear (2005)â€™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 Lazearâ€™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 Lazearâ€™s Jacks-of-All-Trades model.
|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|
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