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Self-employment and psychometric measure of risk aversion: a replication and extension

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  • Marko Korhonen
  • Rauli Svento
  • Mikko Vaaramo

Abstract

We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might have changed due to increase of females in labour market, endogenous adaptation in risk preferences or because of the self-employment experience itself affects risk preferences. These effects are not significant, either.

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  • Marko Korhonen & Rauli Svento & Mikko Vaaramo, 2020. "Self-employment and psychometric measure of risk aversion: a replication and extension," Applied Economics Letters, Taylor & Francis Journals, vol. 27(9), pages 697-702, May.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:9:p:697-702
    DOI: 10.1080/13504851.2019.1644429
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    Cited by:

    1. Mikko Vaaramo & Leena Ala-Mursula & Jouko Miettunen & Marko Korhonen, 2023. "Economic preferences and temperament traits among business leaders and paid employees," Small Business Economics, Springer, vol. 60(3), pages 1197-1217, March.

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