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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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  • Orazem, Peter F
  • Jolly, Robert
  • Yu, Li

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.

Suggested Citation

  • Orazem, Peter F & Jolly, Robert & Yu, Li, 2015. "Once an entrepreneur, always an entrepreneur? The impacts of skills developed before, during and after college on firm start-ups," ISU General Staff Papers 201501010800001281, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201501010800001281
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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. 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.
    4. 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).
    5. 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.
    6. Molina, Jose Alberto & Ortega, Raquel & Velilla, Jorge, 2017. "Feminization of entrepreneurship in developing countries," MPRA Paper 76981, University Library of Munich, Germany.
    7. Jorge, Velilla, 2017. "Feminization of entrepreneurship in developing countries? Evidence from GEM data," MPRA Paper 79997, University Library of Munich, Germany.
    8. Li Yu & Georgeanne M. Artz, 2019. "Does rural entrepreneurship pay?," Small Business Economics, Springer, vol. 53(3), pages 647-668, October.

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    JEL classification:

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

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