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Self-employment and attitudes towards risk: timing and unobserved heterogeneity

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Self-employment and attitudes towards risk: timing and unobserved heterogeneity. / Brown, Sarah; Dietrich, Mike ; Ortiz-Nunez, Aurora et al.
In: Journal of Economic Psychology, Vol. 32, No. 3, 06.2011, p. 425-433.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Brown, S, Dietrich, M, Ortiz-Nunez, A & Taylor, K 2011, 'Self-employment and attitudes towards risk: timing and unobserved heterogeneity', Journal of Economic Psychology, vol. 32, no. 3, pp. 425-433. https://doi.org/10.1016/j.joep.2011.02.015

APA

Brown, S., Dietrich, M., Ortiz-Nunez, A., & Taylor, K. (2011). Self-employment and attitudes towards risk: timing and unobserved heterogeneity. Journal of Economic Psychology, 32(3), 425-433. https://doi.org/10.1016/j.joep.2011.02.015

Vancouver

Brown S, Dietrich M, Ortiz-Nunez A, Taylor K. Self-employment and attitudes towards risk: timing and unobserved heterogeneity. Journal of Economic Psychology. 2011 Jun;32(3):425-433. doi: 10.1016/j.joep.2011.02.015

Author

Brown, Sarah ; Dietrich, Mike ; Ortiz-Nunez, Aurora et al. / Self-employment and attitudes towards risk : timing and unobserved heterogeneity. In: Journal of Economic Psychology. 2011 ; Vol. 32, No. 3. pp. 425-433.

Bibtex

@article{b08ac298dc3145b3bd5dddb82d541369,
title = "Self-employment and attitudes towards risk: timing and unobserved heterogeneity",
abstract = "We explore the relationship between self-employment and attitudes towards financial risk using individual level data drawn from the US Panel Study of Income Dynamics (PSID), which includes measures of individuals{\textquoteright} attitudes towards hypothetical gambles allowing us to explore the implications of interpersonal differences in risk attitudes for the probability of self-employment. Our empirical findings suggest that willingness to take financial risk is positively associated with self-employment. By exploiting the panel aspect of the PSID, we find evidence, whilst controlling for unobserved individual heterogeneity, consistent with a causal relationship between attitudes towards risk and self-employment with attitudes towards risk measured prior to becoming self-employed having a statistically significant positive influence on the probability of future self-employment.",
keywords = "Risk attitudes, Self-employment",
author = "Sarah Brown and Mike Dietrich and Aurora Ortiz-Nunez and Karl Taylor",
year = "2011",
month = jun,
doi = "10.1016/j.joep.2011.02.015",
language = "English",
volume = "32",
pages = "425--433",
journal = "Journal of Economic Psychology",
issn = "0167-4870",
publisher = "Elsevier",
number = "3",

}

RIS

TY - JOUR

T1 - Self-employment and attitudes towards risk

T2 - timing and unobserved heterogeneity

AU - Brown, Sarah

AU - Dietrich, Mike

AU - Ortiz-Nunez, Aurora

AU - Taylor, Karl

PY - 2011/6

Y1 - 2011/6

N2 - We explore the relationship between self-employment and attitudes towards financial risk using individual level data drawn from the US Panel Study of Income Dynamics (PSID), which includes measures of individuals’ attitudes towards hypothetical gambles allowing us to explore the implications of interpersonal differences in risk attitudes for the probability of self-employment. Our empirical findings suggest that willingness to take financial risk is positively associated with self-employment. By exploiting the panel aspect of the PSID, we find evidence, whilst controlling for unobserved individual heterogeneity, consistent with a causal relationship between attitudes towards risk and self-employment with attitudes towards risk measured prior to becoming self-employed having a statistically significant positive influence on the probability of future self-employment.

AB - We explore the relationship between self-employment and attitudes towards financial risk using individual level data drawn from the US Panel Study of Income Dynamics (PSID), which includes measures of individuals’ attitudes towards hypothetical gambles allowing us to explore the implications of interpersonal differences in risk attitudes for the probability of self-employment. Our empirical findings suggest that willingness to take financial risk is positively associated with self-employment. By exploiting the panel aspect of the PSID, we find evidence, whilst controlling for unobserved individual heterogeneity, consistent with a causal relationship between attitudes towards risk and self-employment with attitudes towards risk measured prior to becoming self-employed having a statistically significant positive influence on the probability of future self-employment.

KW - Risk attitudes

KW - Self-employment

U2 - 10.1016/j.joep.2011.02.015

DO - 10.1016/j.joep.2011.02.015

M3 - Journal article

VL - 32

SP - 425

EP - 433

JO - Journal of Economic Psychology

JF - Journal of Economic Psychology

SN - 0167-4870

IS - 3

ER -