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Occupational Choice and Self-Employment - Are They Related?

  • Alina Sorgner


    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Fritsch


    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Often, a person will become an entrepreneur only after a period of dependent employment, suggesting that occupational choices precede entrepreneurial choices. We investigate the relationship between occupational choice and self-employment. The findings suggest that the occupational choice of future entrepreneurs at the time of labor market entry is partly guided by a taste for skill variety, the prospect of high earnings, and occupational earnings risk. Entrepreneurial intentions may also emerge after gaining work experience in a chosen occupation. We find that occupations characterized by high levels of unemployment and earnings risk, relatively many job opportunities, and high self-employment rates foster the founding of an own business. Also, people who fail to achieve an occupation-specific income have a tendency for self-employment.

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Paper provided by Friedrich-Schiller-University Jena in its series Jena Economic Research Papers with number 2013-001.

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Date of creation: 08 Jan 2013
Date of revision:
Handle: RePEc:jrp:jrpwrp:2013-001
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