Explaining preferences and actual involvement in self-employment: Gender and the entrepreneurial personality

This paper investigates an essential aspect of the entrepreneurial personality: why women's self-employment rates are consistently lower than those of men. It has three focal points. It discriminates between the preference for self-employment and actual involvement in self-employment using a tw...

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Bibliographic Details
Published in:Journal of Economic Psychology
Main Authors: Verheul, Ingrid, Thurik, Roy, Grilo, Isabel, Van der Zwan, Peter
Other Authors: UCL - SSH/IMMAQ/CORE - Center for operations research and econometrics
Format: Article in Journal/Newspaper
Language:unknown
Published: Elsevier BV 2012
Subjects:
Online Access:http://hdl.handle.net/2078.1/161011
https://doi.org/10.1016/j.joep.2011.02.009
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Summary:This paper investigates an essential aspect of the entrepreneurial personality: why women's self-employment rates are consistently lower than those of men. It has three focal points. It discriminates between the preference for self-employment and actual involvement in self-employment using a two (probit) equation model. It makes a systematic distinction between different ways in which gender influences the preference for and actual involvement in self-employment (mediation and moderation). It includes perceived ability as a potential driver of self-employment next to risk attitude, self-employed parents and other socio-demographic drivers. A representative data set of more than 8000 individuals from 29 countries (25 EU Member States, US, Norway, Iceland and Liechtenstein) is used (the 2004 Flash Eurobarometer survey). The findings show that women's lower preference for becoming self-employed plays an important role in explaining their lower involvement in self-employment and that a gender effect remains that may point at gender-based obstacles to entrepreneurship. © 2011 Elsevier B.V.