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

37 Pages Posted: 12 Feb 2013

See all articles by Michael Fritsch

Michael Fritsch

University of Jena - School of Economics and Business Administration

Alina Sorgner

University of Jena

Date Written: February 1, 2013

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.

Keywords: Entrepreneurial choice, vocational choice, personality traits

JEL Classification: L26, J24, D01

Suggested Citation

Fritsch, Michael and Sorgner, Alina, Stepping Forward: Personality Traits, Choice of Profession, and the Decision to Become Self-Employed (February 1, 2013). SOEPpaper No. 539, Available at SSRN: https://ssrn.com/abstract=2214881 or http://dx.doi.org/10.2139/ssrn.2214881

Michael Fritsch (Contact Author)

University of Jena - School of Economics and Business Administration ( email )

Carl-Zeiss-Str. 3
D-07743 Jena
Germany

Alina Sorgner

University of Jena ( email )

F├╝rstengraben 1
Jena, 07743
Germany

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