Seeing What You Believe in? Confirmation Bias and the Wages of Hybrid Entrepreneurs

Francesco Castellaneta, Vera Rocha, Di Tong, Daniel Tzabbar

Research output: Contribution to conferencePaperResearchpeer-review


Leveraging matched employer-employee data from Portugal between 1994 and 2009, we examine the effect of hybrid entrepreneurship experience on wages. Drawing from confirmation bias theory, we theorize and demonstrate an overall wage penalty associated with employee experience with hybrid entrepreneurship relative to peers. We further show, however, that when comparing with low performers, high performers (i.e., the top earners in the firm) earn a small but significant wage premium when engaging in hybrid entrepreneurship. Female employees are penalized significantly less than their male counterparts. After exploring various potential mechanisms, we find reduced bargaining power to be a main reason why hybrid entrepreneurs face a wage penalty. By implication, our results provide a meeting place for entrepreneurship, strategic human capital, and gender scholars.
Original languageEnglish
Publication date2023
Number of pages40
Publication statusPublished - 2023
EventDRUID23 Conference - NOVA School of Business and Economics, Lisbon, Portugal
Duration: 10 Jun 202312 Jun 2023
Conference number: 44


ConferenceDRUID23 Conference
LocationNOVA School of Business and Economics
Internet address


  • Hybrid entrepreneurship
  • Wage
  • Confirmation bias
  • Gender
  • High performers

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