Entry into Entrepreneurship, Endogenous Adaption of Risk Attitudes and Entrepreneurial Survival
Matthias Brachert, Walter Hyll, Mirko Titze
SOEPpapers,
No. 701,
2014
Abstract
Empirical studies use the assumption of stability in individual risk attitudes when searching for a relationship between attitude to risk and the decision to become and survive as an entrepreneur. We show that risk attitudes do not remain stable but face endogenous adaption when starting a new business. This adaption is associated with entrepreneurial survival. The results show that entrepreneurs with low risk tolerance before entering self-employment and increased risk tolerance when self-employed have a higher probability of survival than similar entrepreneurs experiencing a decrease in the willingness to take risks. We find the opposite results for entrepreneurs who express a higher willingness to take risks before becoming self-employed: in this case, a decrease in tolerance of risk is correlated with an increasing survival probability.
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On the Stability of Preferences: Repercussions of Entrepreneurship on Risk Attitudes
Matthias Brachert, Walter Hyll
IWH Discussion Papers,
No. 5,
2014
Abstract
The majority of empirical studies make use of the assumption of stable preferences in searching for a relationship between risk attitude and the decision to become and stay an entrepreneur. Yet empirical evidence on this relationship is limited. In this paper, we show that entry into entrepreneurship itself plays a decisive role in shaping risk preferences. We find that becoming self-employed is indeed associated with a relative increase in risk attitudes, an increase that is quantitatively large and significant even after controlling for individual characteristics, different employment status, and duration of entrepreneurship. The findings suggest that studies assuming that risk attitudes are stable over time suffer from reverse causality; risk attitudes do not remain stable over time, and individual preferences change endogenously.
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Effects of Entrepreneurship Education at Universities
S. Laspita, H. Patzelt, Viktor Slavtchev
Jena Economic Research Papers, Nr. 2012-025,
No. 25,
2012
Abstract
This study analyzes the impact of entrepreneurship education at universities on the intentions of students to become entrepreneurs or self-employed in the short-term (immediately after graduation) and in the long-term (five years after graduation). A difference-in-differences approach is applied that relates changes in entrepreneurial intentions to changes in the attendance of entrepreneurship classes in the same period. To account for a potential bias due to self-selection into entrepreneurship classes, only individuals having no prior entrepreneurial intentions are analyzed. Our results indicate a stimulating effect of entrepreneurship education on students’ intentions to become entrepreneurs or self-employed in the long-term but a discouraging effect on their intentions in the short-term. These results support the conjecture that entrepreneurship education provides more realistic perspectives on what it takes to be an entrepreneur, resulting in ‘sorting’. Overall, the results indicate that entrepreneurship education may improve the quality of labor market matches, the allocation of resources and talent, and increase social welfare. Not distinguishing between short- and long-term intentions may lead to misleading conclusions regarding the economic and social impact of entrepreneurship education.
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The Changing Process of the Quality of Work – 8th Joint Workshop of the IWH and IAB on Labor Market Policy
Herbert S. Buscher
Wirtschaft im Wandel,
No. 11,
2011
Abstract
During October 20th and 21st the 8th workshop on Labor Market Policy in Halle (Saale) took place. The major theme was related to changes in the quality of work. One reason for selecting this topic points out that there is a declining number of unemployed people in the German labor market for now a couple of months. This development is often interpreted as the result of a successful labor market policy. But focusing only on quantitative aspects of labor market developments ignores the important aspect of the quality of work.
Over the last years there was also a contemporary debate about changes in the working world. And within this discussion the focus was not only on aspects like income, certainty of employment, and career opportunities. In addition to these issues and with considerable emphasis on the new aspects, the discussion extended to topics such as sense and meaning of activities, work-life balances, self-realization, autonomy, and job satisfaction. It is the aim of the 8th workshop to present and to discuss the current state of the quality of work-debate in the labor market research to a broad audience of scientists as well as practical women and men, and to shed light on possible further research topics in this area. Besides of the opening lecture given by Dr. Ulrich Walwei (IAB), eleven additional papers have been presented during the two-day’s conference.
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Employment in the East German environmental sector - an analysis based on the IAB Company Panel
Walter Komar
Wirtschaft im Wandel,
No. 13,
2001
Abstract
The estimations of environmental employment in this paper are based on an analysis of IAB-Firm-Panel. In 1999 182 000 man were working in production of environmental goods and services. Recording to self-assessment of firms intermediate term environmental employment will increase in environmental services sector, particulary in the field of climate protection.
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Measures to improve the employment prospect of welfare recipients – the view of the participients
Cornelia Lang
Wirtschaft im Wandel,
No. 12,
2001
Abstract
The results of measures to improve the employment prospects of welfare recipients are rather discouraging with respect to their core intention; many participants transit after the measure again into unemployment. Still (nevertheless) the majority of former participants surveyed by the IWH report a subjective evaluation, because the measure helped them to readjust to the daily routine of work. For many participants the ending of isolation and their regain of (improvement) of their selfesteem and self-confidence was important.
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The East-West entrepreneurial gap – a crucial economic problem in East Germany?
Gerhard Heimpold
Wirtschaft im Wandel,
No. 9,
2001
Abstract
The ratio of business units per inhabitant is one of the most important factors that determine the development of economies and regions, because it has a strong impact on competition, employment and innovation. In East Germany, where the process of catching up has decelerated since the mid-nineties, the findings on this topic are ambivalent: on the one hand, half a million self-employed persons are counted and a similar number of companies are registered by the regional Chambers of Industry and Commerce. Furthermore, about 157.000 companies engaged in handicraft exist. These figures can be regarded as a success compared to the beginning of the nineties at the outset of systemic transformation. On the other hand, a striking entrepreneurial gap in East Germany still exists compared to the situation in the western part. It seems that this gap will not be closed in the near future, even on the contrary: the number of newly registered business units in East Germany has declined. Against this background, the promotion of entrepreneurship will remain a great challenge on the political agenda.
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Self-employment – Ideal or emergency solution?
Cornelia Lang
Wirtschaft im Wandel,
No. 9,
1997
Abstract
Im Beitrag wird der Wunsch junger Menschen nach beruflicher Selbständigkeit näher betrachtet. Hinter diesem Wunsch können ganz unterschiedliche Motive stehen und zwischen Wunsch nach Selbständigkeit und der Wirklichkeit – gemessen am Anteil junger Erwachsener, die diesen Weg tatsächlich einschlagen – gibt es beachtliche Diskrepanzen.
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