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.
    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.

    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

    Cite this

    Lindquist, M. J., Sol, J., Van Praag, M., & Vladasel, T. (2016). Family Background and Entrepreneurship. Paper presented at The DRUID 20th Anniversary Conference 2016, København, Denmark.
    Lindquist, Matthew J. ; Sol, Joeri ; Van Praag, Mirjam ; Vladasel, Theodor. / Family Background and Entrepreneurship. Paper presented at The DRUID 20th Anniversary Conference 2016, København, Denmark.36 p.
    @conference{7935f3a06fa44dadabe2bd5b60cff1e1,
    title = "Family Background and Entrepreneurship",
    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.",
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    author = "Lindquist, {Matthew J.} and Joeri Sol and {Van Praag}, Mirjam and Theodor Vladasel",
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    Lindquist, MJ, Sol, J, Van Praag, M & Vladasel, T 2016, 'Family Background and Entrepreneurship' Paper presented at, København, Denmark, 13/06/2016 - 15/06/2016, .

    Family Background and Entrepreneurship. / Lindquist, Matthew J.; Sol, Joeri; Van Praag, Mirjam; Vladasel, Theodor.

    2016. Paper presented at The DRUID 20th Anniversary Conference 2016, København, Denmark.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Family Background and Entrepreneurship

    AU - Lindquist,Matthew J.

    AU - Sol,Joeri

    AU - Van Praag,Mirjam

    AU - Vladasel,Theodor

    PY - 2016

    Y1 - 2016

    N2 - 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.

    AB - 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.

    KW - Entrepreneurship

    KW - Family background

    KW - Intergenerational persistence

    KW - Neighborhood effects

    KW - Sibling correlations

    KW - Entrepreneurship

    KW - Family background

    KW - Intergenerational persistence

    KW - Neighborhood effects

    KW - Sibling correlations

    M3 - Paper

    ER -

    Lindquist MJ, Sol J, Van Praag M, Vladasel T. Family Background and Entrepreneurship. 2016. Paper presented at The DRUID 20th Anniversary Conference 2016, København, Denmark.