The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age

This paper revisits the empirical relationship between the probability of transition to entrepreneurship and wealth. Given that wealth is correlated with both education and age, these observable characteristics cannot be treated as independent covariates in the estimation. Thus, I document the diffe...

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Main Author:	Mondragon-Velez, Camilo
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Entrepreneurship L260
Online Access:	http://hdl.handle.net/10986/4782

id	okr-10986-4782
recordtype	oai_dc
spelling	okr-10986-47822021-04-23T14:02:19Z The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age Mondragon-Velez, Camilo Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Entrepreneurship L260 This paper revisits the empirical relationship between the probability of transition to entrepreneurship and wealth. Given that wealth is correlated with both education and age, these observable characteristics cannot be treated as independent covariates in the estimation. Thus, I document the differences in the transition probability profile across age and education groups. The main result of this paper is that the estimated probability of transition to entrepreneurship is hump-shaped in wealth across cohorts defined by age and education. Therefore, the aggregate profile estimated by Hurst and Lusardi (J Polit Econ 112(2):319-347, 2004) is not representative at the micro level. In addition, this paper provides facts that evidence important differences between entrepreneurs and workers, as well as among entrepreneurs, across education and age. 2012-03-30T07:29:43Z 2012-03-30T07:29:43Z 2009 Journal Article Annals of Finance 16142446 http://hdl.handle.net/10986/4782 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Entrepreneurship L260
spellingShingle	Personal Income, Wealth, and Their Distributions D310 Intertemporal Consumer Choice Life Cycle Models and Saving D910 Entrepreneurship L260 Mondragon-Velez, Camilo The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper revisits the empirical relationship between the probability of transition to entrepreneurship and wealth. Given that wealth is correlated with both education and age, these observable characteristics cannot be treated as independent covariates in the estimation. Thus, I document the differences in the transition probability profile across age and education groups. The main result of this paper is that the estimated probability of transition to entrepreneurship is hump-shaped in wealth across cohorts defined by age and education. Therefore, the aggregate profile estimated by Hurst and Lusardi (J Polit Econ 112(2):319-347, 2004) is not representative at the micro level. In addition, this paper provides facts that evidence important differences between entrepreneurs and workers, as well as among entrepreneurs, across education and age.
format	Journal Article
author	Mondragon-Velez, Camilo
author_facet	Mondragon-Velez, Camilo
author_sort	Mondragon-Velez, Camilo
title	The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
title_short	The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
title_full	The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
title_fullStr	The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
title_full_unstemmed	The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age
title_sort	probability of transition to entrepreneurship revisited: wealth, education and age
publishDate	2012
url	http://hdl.handle.net/10986/4782
_version_	1764392740108369920

The Probability of Transition to Entrepreneurship Revisited: Wealth, Education and Age

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