Low Risk Aversion Encourages the Choice for Entrepreneurship: An Empirical Test of a Truism
13 Pages Posted: 11 Dec 2001 Last revised: 22 Jan 2016
Date Written: January 1, 2001
Entrepreneurship is historically associated with risk bearing. Consequently, risk attitude is widely believed to affect the selection of individuals into entrepreneurial positions. The data used in our empirical analysis support the supposedly negative effect of risk-aversion on entrepreneurship selection. However, we feel not sufficiently confident about our measure of risk attitude to conclude anything concerning the causality of this relationship.
Keywords: Entrepreneurship, self-employment, risk-taking, occupational choice
JEL Classification: D81, J23, J24, M13
Suggested Citation: Suggested Citation