Delhi College of Arts & Commerce
University of Delhi
Institutional Affiliation: University of Delhi
NBER Working Papers and Publications
|September 2018||The Right Stuff? Personality and Entrepreneurship|
with Barton H. Hamilton, Nicholas W. Papageorge: w25006
We construct a structural model of entry into self-employment to evaluate the impact of policies supporting entrepreneurship. Previous work has recognized that workers may opt for self-employment due to the non-pecuniary benefits of running a business and not necessarily because they are good at it. Other literature has examined how socio-emotional skills, such as personality traits, affect selection into self-employment. We link these two lines of inquiry. The model we estimate captures three factors that affect selection into self-employment: credit constraints, relative earnings and preferences. We incorporate personality traits by allowing them to affect sector-specific earnings as well as preferences. The estimated model reveals that the personality traits that make entrepreneurship p...
Published: Barton H. Hamilton & Nicholas W. Papageorge & Nidhi Pande, 2019. "The right stuff? Personality and entrepreneurship," Quantitative Economics, vol 10(2), pages 643-691.