Entrepreneurial Couples

Michael S. Dahl, Mirjam Van Praag, Peter Thompson

    Research output: Working paperResearch

    Abstract

    We study possible motivations for co-entrepenurial couples to start up a joint firm, using a sample of 1,069 Danish couples that established a joint enterprise between 2001 and 2010. We compare their pre-entry characteristics, firm performance and postdissolution private and financial outcomes with a selected set of comparable firms and couples. We find evidence that couples often establish a business together because one spouse – most commonly the female – has limited outside opportunities in the labor market. However, the financial benefits for each of the spouses, and especially the female, are larger in co-entrepreneurial firms, both during the life of the business and post-dissolution. The start-up of co-entrepreneurial firms seems therefore a sound investment in the human capital of both spouses as well as in the reduction of income inequality in the household. We find no evidence of non-pecuniary benefits or costs of coentrepreneurship.
    We study possible motivations for co-entrepenurial couples to start up a joint firm, using a sample of 1,069 Danish couples that established a joint enterprise between 2001 and 2010. We compare their pre-entry characteristics, firm performance and postdissolution private and financial outcomes with a selected set of comparable firms and couples. We find evidence that couples often establish a business together because one spouse – most commonly the female – has limited outside opportunities in the labor market. However, the financial benefits for each of the spouses, and especially the female, are larger in co-entrepreneurial firms, both during the life of the business and post-dissolution. The start-up of co-entrepreneurial firms seems therefore a sound investment in the human capital of both spouses as well as in the reduction of income inequality in the household. We find no evidence of non-pecuniary benefits or costs of coentrepreneurship.
    LanguageEnglish
    Place of PublicationAmsterdam
    PublisherTinbergen Institute
    Number of pages27
    StatePublished - 2014
    SeriesTinbergen Institute Discussion Papers
    Number14-055/V
    SeriesIZA Discussion Paper
    Number8186

    Keywords

      Cite this

      Dahl, M. S., Van Praag, M., & Thompson, P. (2014). Entrepreneurial Couples. Amsterdam: Tinbergen Institute. Tinbergen Institute Discussion Papers, No. 14-055/V, IZA Discussion Paper, No. 8186
      Dahl, Michael S. ; Van Praag, Mirjam ; Thompson, Peter. / Entrepreneurial Couples. Amsterdam : Tinbergen Institute, 2014. (Tinbergen Institute Discussion Papers; No. 14-055/V). (IZA Discussion Paper; No. 8186).
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      Dahl, MS, Van Praag, M & Thompson, P 2014 'Entrepreneurial Couples' Tinbergen Institute, Amsterdam.

      Entrepreneurial Couples. / Dahl, Michael S.; Van Praag, Mirjam; Thompson, Peter.

      Amsterdam : Tinbergen Institute, 2014.

      Research output: Working paperResearch

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      AB - We study possible motivations for co-entrepenurial couples to start up a joint firm, using a sample of 1,069 Danish couples that established a joint enterprise between 2001 and 2010. We compare their pre-entry characteristics, firm performance and postdissolution private and financial outcomes with a selected set of comparable firms and couples. We find evidence that couples often establish a business together because one spouse – most commonly the female – has limited outside opportunities in the labor market. However, the financial benefits for each of the spouses, and especially the female, are larger in co-entrepreneurial firms, both during the life of the business and post-dissolution. The start-up of co-entrepreneurial firms seems therefore a sound investment in the human capital of both spouses as well as in the reduction of income inequality in the household. We find no evidence of non-pecuniary benefits or costs of coentrepreneurship.

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      Dahl MS, Van Praag M, Thompson P. Entrepreneurial Couples. Amsterdam: Tinbergen Institute. 2014.