On the Origins of Entrepreneurship: Evidence from Sibling Correlations

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

    Research output: Working paperResearch

    Abstract

    We assess the broad importance of family and community background for entrepreneurship outcomes. We go beyond traditional, intergenerational associations by estimating sibling correlations in unincorporated and incorporated entrepreneurship using register data from Sweden. Sibling correlations range from 20% to 50%. They are consistently higher for more committed and incorporated entrepreneurship than for less committed or unincorporated entrepreneurship; they are also higher for brothers than sisters. We then assess what factors drive these correlations: parental entrepreneurship, neighborhoods, shared genes and financial resources help explain these high correlations, whereas immigration status, family structure and sibling peer effects have a limited contribution. The higher correlation for incorporated versus unincorporated entrepreneurship is explained mainly by the type of parental entrepreneurial engagement and financial resources, while the gap between brother and sister correlations in unincorporated entrepreneurship is largely driven by the geographic concentration of male dominated industries.
    Original languageEnglish
    Place of PublicationStockholm
    PublisherSwedish Institute for Social Research (SOFI). Stockholm University
    Number of pages56
    Publication statusPublished - 2017
    SeriesSOFI Working Papers
    Number 7/2017

    Keywords

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

    Cite this

    Lindquist, M. J., Sol, J., Van Praag, M., & Vladasel, T. (2017). On the Origins of Entrepreneurship: Evidence from Sibling Correlations. Stockholm: Swedish Institute for Social Research (SOFI). Stockholm University. SOFI Working Papers, No. 7/2017