Self-employment and psychometric measure of risk aversion:a replication and extension

Abstract We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might...

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Bibliographic Details
Main Authors: Korhonen, M. (Marko), Svento, R. (Rauli), Vaaramo, M. (Mikko)
Format: Article in Journal/Newspaper
Language:English
Published: Informa 2020
Subjects:
logit regression
psychometric data
risk aversion
self-employment
Northern Finland
Online Access:http://urn.fi/urn:nbn:fi-fe2020070146578
Description
Summary:Abstract We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might have changed due to increase of females in labour market, endogenous adaptation in risk preferences or because of the self-employment experience itself affects risk preferences. These effects are not significant, either.

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