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Dinner Table Human Capital and Entrepreneurship

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  • Hans K. Hvide
  • Paul Oyer

Abstract

We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers’ industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers. Third, an entrepreneur that starts a firm in the same industry as where his father was employed tends to outperform entrepreneurs in the same industry whose fathers did not work in that industry. We consider various explanations for these facts and propose that “dinner table human capital”, where children obtain industry knowledge through their parents, is an important factor behind them.

Suggested Citation

  • Hans K. Hvide & Paul Oyer, 2018. "Dinner Table Human Capital and Entrepreneurship," NBER Working Papers 24198, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24198
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    Cited by:

    1. Tania Babina & Wenting Ma & Christian Moser & Paige Ouimet & Rebecca Zarutskie, 2019. "Pay, Employment, and Dynamics of Young Firms," Working Papers 19-23, Center for Economic Studies, U.S. Census Bureau.
    2. Naijia Guo & Charles Ka Yui Leung, 2021. "Do Elite Colleges Matter? The Impact on Entrepreneurship Decisions and Career Dynamics," GRU Working Paper Series GRU_2021_006, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    3. Hvide, Hans K. & Meling, Tom G., 2019. "Do Temporary Demand Shocks have Long-Term Effects for Startups?," Working Papers in Economics 6/19, University of Bergen, Department of Economics.
    4. Hvide, Hans K & Meling, Tom, 2019. "Do Temporary Demand Shocks have Long-Term Effects for Startups?," CEPR Discussion Papers 14131, C.E.P.R. Discussion Papers.
    5. Soleimanof, Sohrab & Morris, Michael H. & Jang, Yongseok, 2021. "Following the footsteps that inspire: Parental passion, family communication, and children’s entrepreneurial attitudes," Journal of Business Research, Elsevier, vol. 128(C), pages 450-461.

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    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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