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Are Nascent Entrepreneurs Jacks-of-all-trades? A Test of Lazear's Theory of Entrepreneurship with German Data*

[Zeitschriftenartikel]

Wagner, Joachim

Abstract

Abstract: In a recent paper Edward Lazear proposed the jack-of-all-trades view of entrepreneurship. Based on a coherent model of the choice between self-employment and paid employment he shows that having a background in a large number of different roles increases the probability of becoming an entr... mehr

Abstract: In a recent paper Edward Lazear proposed the jack-of-all-trades view of entrepreneurship. Based on a coherent model of the choice between self-employment and paid employment he shows that having a background in a large number of different roles increases the probability of becoming an entrepreneur. The intuition behind this proposition is that entrepreneurs must have sufficient knowledge in a variety of areas to put together the many ingredients needed for survival and success in a business, while for paid employees it suffices and pays to be a specialist in the field demanded by the job taken. This paper contributes to the entrepreneurship literature by empirically testing Lazear's hypothesis using a large recent representative sample of the German population. The empirical estimation takes the rare events nature of becoming a nascent entrepreneur and the regional stratification of the sample into account. The results illustrate the statistical significance and economic importance of the jack-of-all-trades theory.... weniger

Sprache Dokument
Englisch

Publikationsjahr
2006

Seitenangabe
S. 2415-2419

Zeitschriftentitel
Applied Economics, 38 (2006) 20

DOI
https://doi.org/10.1080/00036840500427783

Status
Postprint; begutachtet (peer reviewed)

Lizenz
PEER Licence Agreement (applicable only to documents from PEER project)


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