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Once an entrepreneur, always an entrepreneur? The impacts of skills developed before, during and after college on firm start-ups

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  • Peter Orazem
  • Robert Jolly
  • Li Yu

Abstract

By allowing agents to switch from entrepreneurship to wage work and vice versa over the life cycle, this study proposes a dynamic Jacks-of-All-Trades (JAT) model where entrepreneurs invest in highly varied skills to manage their business. We simultaneously endogenize human capital investment and occupational decisions. Using the survey data of Iowa State alumni graduating between 1982 and 2006, we find that the probability of selecting a broad curriculum, having a more varied career, and becoming an entrepreneur are jointly positively correlated. Academic diversity is found to be initially important in starting a business shortly after completing schooling, but its importance declines over time. Copyright Orazem et al.; licensee Springer. 2015

Suggested Citation

  • Peter Orazem & Robert Jolly & Li Yu, 2015. "Once an entrepreneur, always an entrepreneur? The impacts of skills developed before, during and after college on firm start-ups," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    • Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-27:10.1186/s40172-015-0023-7
    DOI: 10.1186/s40172-015-0023-7
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    Cited by:

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    2. Kunwon Ahn & John V. Winters, 2023. "Does education enhance entrepreneurship?," Small Business Economics, Springer, vol. 61(2), pages 717-743, August.
    3. Laffineur, Catherine & Dubard Barbosa, Saulo & Fayolle, Alain & Montmartin, Benjamin, 2020. "The unshackled entrepreneur: Occupational determinants of entrepreneurial effort," Journal of Business Venturing, Elsevier, vol. 35(5).
    4. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Feminization of entrepreneurship in developing countries," MPRA Paper 76981, University Library of Munich, Germany.
    5. Gascón Salillas, Patricia, 2020. "La actividad emprendedora: Análisis transversal en la Comunidad Foral de Navarra [Entrepreneurship activity: Cross-sectional analysis in the Region of Navarra]," MPRA Paper 99386, University Library of Munich, Germany.
    6. Li Yu & Georgeanne M. Artz, 2019. "Does rural entrepreneurship pay?," Small Business Economics, Springer, vol. 53(3), pages 647-668, October.
    7. Li Yu & Xundong Yin & Xiang Zheng & Wenwei Li, 2017. "Lose to win: entrepreneurship of returned migrants in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(2), pages 341-374, March.
    8. Ortega Palacios, Inés, 2020. "Análisis del emprendimiento usando datos GEM: evidencias para la Comunidad de Madrid [Entrepreneurship analysis using Gem data: evidence for Madrid]," MPRA Paper 98687, University Library of Munich, Germany.

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    More about this item

    Keywords

    J24; Entrepreneurship; Jacks-of-all-trades; Educational experiences; Working experience; Entry;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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