Keeping options open: What motivates entrepreneurs?

• 成果类型: Article
• 署名作者: Catherine, Sylvain
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2022.01.001
• 发表日期: 2022
• 页码: 1-21
• 关键词: Entrepreneurship; Life-cycle model; structural estimation; learning

摘要

Using French administrative data on job-creating entrepreneurs, I estimate a life-cycle model in which risk-averse individuals can start businesses and return to paid employment. Then, I use the dynamic model to value the option of returning to the labor market in case of failure. For new entrepreneurs, this option is worth 6.4 x the average net wage in the country, which represented 136,0 0 0 euro in 2018. This option value is explained by the unobserved heterogeneity in entrepreneurial abilities and the random-walk component of productivity. Estimated unobserved benefits of entrepreneurship represent 38.6% of the average net wage pre-tax per year (some 15% of profits), or 8,250 euro in 2018. Unobserved benefits add up to 90,700 euro over the average entrepreneurial spell. Together, unobserved benefits and the option value of returning to paid employment explain 42% of firm creations. (c) 2022 Elsevier B.V. All rights reserved.