Family Background and Entrepreneurship

Matthew J. Lindquist, Joeri Sol, Mirjam Van Praag, Theodor Vladasel

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Vast amounts of money are currently being spent on policies aimed at promoting entrepreneurship. The success of such policies, however, rests in part on the assumption that individuals are not ‘born entrepreneurs’. In this paper, we assess the importance of family background and neighborhood effects as determinants of entrepreneurship. We start by estimating sibling correlations in entrepreneurship. We find that between 20 and 50 percent of the variance in different entrepreneurial outcomes is explained by factors that siblings share. The average is 28 percent. Allowing for differential treatment within families by gender and birth order does little to further increase our estimates of the importance of family-wide factors. We then go on to show that neighborhood effects, sibling peer effects, and parental income and education explain very little of these correlations. Parental entrepreneurship does play a large role, as do shared genes.
    Original languageEnglish
    Publication date2016
    Number of pages36
    Publication statusPublished - 2016
    EventThe DRUID 20th Anniversary Conference 2016: Innovation and the Dynamics of Change - Copenhagen Business School, København, Denmark
    Duration: 13 Jun 201615 Jun 2016
    Conference number: 38
    http://druid8.sit.aau.dk/druid/registrant/index/login/cid/20

    Conference

    ConferenceThe DRUID 20th Anniversary Conference 2016
    Number38
    LocationCopenhagen Business School
    CountryDenmark
    CityKøbenhavn
    Period13/06/201615/06/2016
    OtherThe DRUID Society Conference 2016
    SponsorCopenhagen Business School
    Internet address

    Keywords

    • Entrepreneurship
    • Family background
    • Intergenerational persistence
    • Neighborhood effects
    • Sibling correlations

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