Experience and Entrepreneurship : A Career Transition Perspective
Rider, Christopher I. ; Thompson, Peter LU ; Kacperczyk, Aleksandra and Tåg, Joacim LU
(2019)
In ILR Review
72(5).
p.1149-1181
- Abstract
The authors cast entrepreneurship as one of three career choices—remaining with one’s employer, changing employers, or engaging in entrepreneurship—and theorize how the likelihood of entrepreneurship evolves over one’s career. They empirically demonstrate an inverted U-shaped relationship between accumulated experience and entrepreneurship across various industries and jobs. The authors highlight the difficulty of inferring the mechanism underlying the observed relationship, despite detailed career history data and job displacement shocks that eliminate the current employer choice. These analyses motivate a formal career transitions model in which employer-specific and general skills accumulate with experience but potential employers... (More)
The authors cast entrepreneurship as one of three career choices—remaining with one’s employer, changing employers, or engaging in entrepreneurship—and theorize how the likelihood of entrepreneurship evolves over one’s career. They empirically demonstrate an inverted U-shaped relationship between accumulated experience and entrepreneurship across various industries and jobs. The authors highlight the difficulty of inferring the mechanism underlying the observed relationship, despite detailed career history data and job displacement shocks that eliminate the current employer choice. These analyses motivate a formal career transitions model in which employer-specific and general skills accumulate with experience but potential employers observe only total skill. Results from the model presented here are that entrepreneurial career transitions vary with two relative costs: 1) the cost to an individual to form a business and 2) the cost to a potential employer to utilize the individual’s employer-specific skills. The authors discuss how this model contributes new insights into an entrepreneurial career.
(Less)
- author
- Rider, Christopher I.
; Thompson, Peter
LU
; Kacperczyk, Aleksandra
and Tåg, Joacim
LU
- publishing date
- 2019-10-01
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- careers, entrepreneurship, human capital, human resource management, labor markets
- in
- ILR Review
- volume
- 72
- issue
- 5
- pages
- 33 pages
- publisher
- Cornell University ILR School
- external identifiers
-
- scopus:85067863650
- ISSN
- 0019-7939
- DOI
- 10.1177/0019793919852919
- language
- English
- LU publication?
- no
- id
- 2562ce1b-79ed-43b0-ae29-d21ca60a52f6
- date added to LUP
- 2020-01-23 15:50:41
- date last changed
- 2022-04-18 19:59:55
@article{2562ce1b-79ed-43b0-ae29-d21ca60a52f6,
abstract = {{<p>The authors cast entrepreneurship as one of three career choices—remaining with one’s employer, changing employers, or engaging in entrepreneurship—and theorize how the likelihood of entrepreneurship evolves over one’s career. They empirically demonstrate an inverted U-shaped relationship between accumulated experience and entrepreneurship across various industries and jobs. The authors highlight the difficulty of inferring the mechanism underlying the observed relationship, despite detailed career history data and job displacement shocks that eliminate the current employer choice. These analyses motivate a formal career transitions model in which employer-specific and general skills accumulate with experience but potential employers observe only total skill. Results from the model presented here are that entrepreneurial career transitions vary with two relative costs: 1) the cost to an individual to form a business and 2) the cost to a potential employer to utilize the individual’s employer-specific skills. The authors discuss how this model contributes new insights into an entrepreneurial career.</p>}},
author = {{Rider, Christopher I. and Thompson, Peter and Kacperczyk, Aleksandra and Tåg, Joacim}},
issn = {{0019-7939}},
keywords = {{careers; entrepreneurship; human capital; human resource management; labor markets}},
language = {{eng}},
month = {{10}},
number = {{5}},
pages = {{1149--1181}},
publisher = {{Cornell University ILR School}},
series = {{ILR Review}},
title = {{Experience and Entrepreneurship : A Career Transition Perspective}},
url = {{http://dx.doi.org/10.1177/0019793919852919}},
doi = {{10.1177/0019793919852919}},
volume = {{72}},
year = {{2019}},
}