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Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed

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  • Michael Fritsch

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Alina Sorgner

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

We argue that entrepreneurial choice proceeds in at least in two steps, with vocational choice nearly always preceding choice of employment status, whether that be self-employment or dependent employment. Since the two decisions are interrelated, analysis of entrepreneurial choice as a single act may lead to inconsistent estimates of the factors that determine the decision to launch a business venture. Our empirical analysis utilizes a bivariate probit model that jointly estimates both decisions. The results support our argument that entrepreneurial choice is a two-stage decision process.

Suggested Citation

  • Michael Fritsch & Alina Sorgner, 2013. "Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed," Jena Economics Research Papers 2013-004, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2013-004
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    More about this item

    Keywords

    Entrepreneurial choice; vocational choice; personality traits;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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