Abstract

http://ssrn.com/abstract=1422506
 
 

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Who Values the Status of the Entrepreneur?


Mirjam Van Praag


University of Amsterdam - Department of Economics; Copenhagen Business School; Tinbergen Institute; Institute for the Study of Labor (IZA)

June 19, 2009

Tinbergen Institute Discussion Paper 09-056/3

Abstract:     
Parker and Van Praag (2009) showed, based on theory, that the group status of the profession ‘entrepreneurship’ shapes people’s occupational preferences and thus their choice behavior. The current study focuses on the determinants and consequences of the group status of a profession, entrepreneurship in particular. If the group status of entrepreneurship is related to individual choice behavior, it is policy relevant to better understand this relationship and the determinants of the status of the entrepreneur. For reasons outlined in the introduction, this study focuses on (800) students in the Netherlands. We find that the status of occupations is mostly determined by the required level of education, the income level to be expected and respect. Furthermore, our results imply that entrepreneurship is associated with hard work, high incomes, but little power and education. Moreover, we find evidence that individual characteristics, such as entrepreneurship experience, vary systematically with the perceived status of occupations, thereby contributing ammunition to a fundamental discussion in the literature. Finally, we find a strong association between the perceived status of the entrepreneur and the estimated likelihood and willingness to become an entrepreneur.

Number of Pages in PDF File: 19

Keywords: Entrepreneurship, self-employment, occupational choice, occupational status, group status, peer group effects

JEL Classification: J22, J24, L26, M13, M59

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Date posted: June 19, 2009  

Suggested Citation

van Praag, Mirjam, Who Values the Status of the Entrepreneur? (June 19, 2009). Tinbergen Institute Discussion Paper 09-056/3. Available at SSRN: http://ssrn.com/abstract=1422506 or http://dx.doi.org/10.2139/ssrn.1422506

Contact Information

Mirjam Van Praag (Contact Author)
University of Amsterdam - Department of Economics ( email )
Roetersstraat 11
Amsterdam, 1018 WB
Netherlands
+31 20 525 4096 (Phone)
+31 20 525 4182 (Fax)
Copenhagen Business School ( email )
Kilevej 14A
Frederiksberg, 2000
Denmark
Tinbergen Institute
Gustav Mahlerlaan
Amsterdam
Netherlands
Institute for the Study of Labor (IZA)
Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany
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