References (17)


Citations (124)




Edward P. Lazear

Stanford Graduate School of Business; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

April 2003

IZA Discussion Paper No. 760

The theory proposed below is that entrepreneurs are jacks-of-all-trades who may not excel in any one skill, but are competent in many. A coherent model of the choice to become an entrepreneur is presented. The primary implication is that individuals with balanced skills are more likely than others to become entrepreneurs. The model provides implications for the proportion of entrepreneurs by occupation, by income and yields a number of predictions for the distribution of income by entrepreneurial status. Using a data set of Stanford alumni, the predictions are tested and found to hold. In particular, by far the most important determinant of entrepreneurship is having background in a large number of different roles. Further, income distribution predictions, e.g., that there are a disproportionate number of entrepreneurs in the upper tail of the distribution, are borne out.

Number of Pages in PDF File: 56

Keywords: Entrepreneurship, Occupation Choice, Diversity, Jack-of-all-trades

JEL Classification: J4

Open PDF in Browser Download This Paper

Date posted: January 10, 2003  

Suggested Citation

Lazear, Edward P., Entrepreneurship (April 2003). IZA Discussion Paper No. 760. Available at SSRN: http://ssrn.com/abstract=333802

Contact Information

Edward P. Lazear (Contact Author)
Stanford Graduate School of Business ( email )
655 Knight Way
Stanford, CA 94305-5015
United States
650-723-9136 (Phone)
650-723-0498 (Fax)

National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Feedback to SSRN

Paper statistics
Abstract Views: 11,374
Downloads: 2,862
Download Rank: 2,404
References:  17
Citations:  124
Paper comments
No comments have been made on this paper

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.234 seconds