Abstract
Entrepreneurs who found new firms tend to work as employees in small rather than large firms prior to start-up and have previous experience of entrepreneurship. We provide a model of self-selection based on heterogeneous risk preferences which can explain these stylized facts.
Original language | English |
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Pages (from-to) | 1-9 |
Journal | Economics Bulletin |
Volume | 10 |
Issue number | 10 |
Publication status | Published - 2007 |