Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 15, 2021 erstellt
Beschreibung:
This paper evaluates the effects of parental income volatility on children’s entrepreneurial decisions in Sweden. We first show that individuals who experience higher uninsurable parental income volatility during adolescence are more likely to become entrepreneurs. A one-standard deviation increase in parental income volatility is associated with an increase in the probability of becoming an entrepreneur of approximately 40% from the mean. Second, we find that firms started by individuals with higher parental income instability have a lower survival rate. Finally, we present evidence in line with higher risk tolerance being an important mechanism driving our findings. We do not find support for alternative mechanisms including ability, genetics, and financial resources