Do attitudes toward risk taking affect entrepreneurship? Evidence from second-generation Americans

A-Tier
Journal: Journal of Economic Growth
Year: 2021
Volume: 26
Issue: 4
Pages: 385-413

Authors (2)

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract This paper empirically investigates the impact of willingness to take risks on entrepreneurship. We use a quarter century of data on second-generation Americans from Current Population Surveys in conjunction with a measure of willingness to take risks based on the Global Preference Survey. The level of risk taking in the country of origin is found to have a positive and significant impact on the likelihood of being an entrepreneur. A one-standard deviation increase in risk taking increases the probability of being an entrepreneur by 18%. We find that risk taking is also robust to other preference and cultural factors such as trust, patience, and individualism, as well as several deep-root determinants of development.

Technical Details

RePEc Handle
repec:kap:jecgro:v:26:y:2021:i:4:d:10.1007_s10887-021-09197-8
Journal Field
Growth/Demographic
Author Count
2
Added to Database
2026-01-25