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TV and Entrepreneurship

Author

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  • Viktor Slavtchev

    () (Halle Institute for Economic Research (IWH))

  • Michael Wyrwich

    () (FSU Jena)

Abstract

Can TV influence the entrepreneurial decisions of individuals? To identify causal effects, we utilize a quasi-natural experiment, namely that during the division of Germany after WWI into the capitalistic West Germany and the socialistic East Germany, West TV was exogenously available only in some regions of the latter. Using regional and individual data, we show that, after the Reunification, entrepreneurship is higher among the residents of East German regions with West TV signal, indicating a direct effect of TV on the entrepreneurial mindset of exposed individuals. Moreover, we find second-order effects due to intergenerational transmission, which cause persistent differences.

Suggested Citation

  • Viktor Slavtchev & Michael Wyrwich, 2017. "TV and Entrepreneurship," Jena Economic Research Papers 2017-007, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2017-007
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    Cited by:

    1. Friehe, Tim & Müller, Helge & Neumeier, Florian, 2018. "The effect of Western TV on crime: Evidence from East Germany," European Journal of Political Economy, Elsevier, vol. 55(C), pages 346-372.

    More about this item

    Keywords

    Entrepreneurship; TV; Culture; Occupational choice; Institutions;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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