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Entrepreneurial human capital

Author

Listed:
  • Iversen, Jens

    (Department of Business and Economics)

  • Malchow-Møller, Nikolaj

    (Department of Business and Economics)

  • Sørensen, Anders

    (Department of Economics)

Abstract

We argue that formal schooling and wage-work experience are complementary types of human capital for entrepreneurs. Strong empirical support is found for this hypothesis as the interaction term between schooling and actual wage-work experience enters positively and significantly in a Mincer equation, whereas the effect of schooling in the absence of wage-work experience is insignificant. These results are extremely robust towards more flexible specifications, including fixed-effects estimations dealing with unobserved heterogeneity. For wage workers, the interaction term is negligible, confirming that the complementarity is a distinct characteristic of entrepreneurial human capital.

Suggested Citation

  • Iversen, Jens & Malchow-Møller, Nikolaj & Sørensen, Anders, 2009. "Entrepreneurial human capital," Discussion Papers on Economics 4/2009, University of Southern Denmark, Department of Economics.
    • Handle: RePEc:hhs:sdueko:2009_004
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Schooling; experience; complementarity; entrepreneurs;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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