The role of risk propensity in predicting self-employment

Biemann, Torsten ; Niessen, Cornelia

Document Type: Article
Year of publication: 2014
The title of a journal, publication series: Journal of Applied Psychology
Volume: 99
Issue number: 5
Page range: 1000-1009
Place of publication: Washington, DC
Publishing house: American Psychological Assoc.
ISSN: 0021-9010 , 1939-1854
Publication language: English
Institution: Business School > ABWL, Personalmanagement u. Führung (Biemann 2013-)
Subject: 330 Economics
Abstract: This study aims to untangle the role of risk propensity as a predictor of self-employment entry and self-employment survival. More specifically, it examines whether the potentially positive effect of risk propensity on the decision to become self-employed turns curvilinear when it comes to the survival of the business. Building on a longitudinal sample of 4,973 individuals from the German Socio-Economic Panel, we used event history analyses to evaluate the influence of risk propensity on self-employment over a 7-year time period. Results indicated that whereas high levels of risk propensity positively predicted the decision to become self-employed, the relationship between risk propensity and self-employment survival followed an inverted U-shaped curve. (PsycINFO Database Record (c) 2014 APA, all rights reserved)

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