Early Career Choices of Superstar Entrepreneurs

67 Pages Posted: 13 Mar 2018 Last revised: 10 Apr 2019

See all articles by Nandini Gupta

Nandini Gupta

Indiana University - Kelley School of Business - Department of Finance

Isaac Hacamo

Indiana University - Kelley School of Business - Department of Finance

Date Written: April 4, 2019

Abstract

Using a dataset on career paths of elite U.S. engineers, including superstar entrepreneurs, we examine the effect of early career choices on long-run entrepreneurial outcomes. Exploiting exogenous variation in entry labor market conditions, driven by local financial sector growth, and comparing classmates in the same school-major-year, we find that talented engineers are more likely to switch from engineering jobs to finance in high finance growth areas. Compared to classmates who remain in engineering, these individuals create fewer startups that are large employers, receive VC funding, are acquired, and issue patents. A quasi-experimental design using state-wise banking deregulation produces similar results.

Keywords: Finance and labor; Talent allocation; Superstars; Human capital; Careers in finance; Financial sector growth; Entrepreneurship; Innovation

JEL Classification: G2, G20, J2, J3, J31, M52, N2

Suggested Citation

Gupta, Nandini and Hacamo, Isaac, Early Career Choices of Superstar Entrepreneurs (April 4, 2019). Kelley School of Business Research Paper No. 18-18. Available at SSRN: https://ssrn.com/abstract=3136751 or http://dx.doi.org/10.2139/ssrn.3136751

Nandini Gupta

Indiana University - Kelley School of Business - Department of Finance ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States
812-855-3416 (Phone)
812-855-5875 (Fax)

Isaac Hacamo (Contact Author)

Indiana University - Kelley School of Business - Department of Finance ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States
812-855-7842 (Phone)

HOME PAGE: http://hacamo.weebly.com/

Register to save articles to
your library

Register

Paper statistics

Downloads
446
Abstract Views
3,507
rank
63,793
PlumX Metrics