The Role of Dissatisfaction and per Capita Income in Explaining Self–Employment across 15 European Countries

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper deals with explaining the sizable differences in the rate of self-employment (business ownership) across 15 European countries in the period 1978-2000, within a framework of occupational choice, focusing on the influence of dissatisfaction and of per capita income. Using two different measures of dissatisfaction, in addition to the level of economic development and controlling for several other variables, we find that, in addition to a negative and significant impact of per capita income, dissatisfaction at the level of societies has a positive and significant influence on self-employment levels. Both dissatisfaction with life and dissatisfaction with the way democracy works are found to influence self-employment. It is concluded that these are proxies for job dissatisfaction and at the same time represent other negative 'displacements' known to promote self-employment. The findings indirectly point at the potential importance of push factors within the incentive structures of modern economies.

Knowledge spillovers and new ventures’ export orientation

“…In this sense, we identify a particular type of entrepreneurship spillover that stems from export activity (Parker 2005). This finding also extends prior research that seeks to understand the determinants of a country's level of entrepreneurship (e.g., Gavron et al 1998;Noorderhaven et al 2004;Storey 1999;Thurik and Wennekers 2004;van Stel et al 2005). To the best of our knowledge, our study is the first to examine the link between the type and level of a country's early-stage entrepreneurial activity.…”

“…That is, the nature of early-stage activity itself can be an important source of spillovers (Parker 2005). In making this claim, we draw from literature that emphasizes the role of macrolevel factors to explain cross-country differences in entrepreneurship (Noorderhaven et al 2004;Verheul et al 2002). Specifically, previous literature highlights the role of demand-side factors (e.g., country's industrial structure) and supply-side factors (e.g., skills and preferences) in shaping entrepreneurs' willingness or ability to act on new business opportunities and create the opportunities for such start-up activity.…”

Postmaterialism Influencing Total Entrepreneurial Activity Across Nations

“…Thus, in a predominantly non-entrepreneurial culture, a clash of values between groups may drive would-be entrepreneurs into self-employment (Baum et al, 1993: 505;and Noorderhaven, Thurik, Wennekers and van Stel, 2004). Based on this view, variation in entrepreneurship is thus based upon differences rather than similarities (in contrast to the aggregate psychological traits perspective) between the values and beliefs of potential entrepreneurs and the population as whole.…”

“…Hypotheses on the relationship between cultural indicators and entrepreneurship differ, depending upon whether one chooses to view the relationship from the aggregate psychological traits perspective, the dissatisfaction perspective, or the social legitimation perspective (Davidsson, 1995;Noorderhaven, Wennekers, Thurik and van Stel, 2004;Hofstede, Noorderhaven, Thurik, Uhlaner, Wennekers and Wildeman, 2004). The aggregate psychological trait explanation of entrepreneurship is based on the view that if there are more people with entrepreneurial values in a country, there will be an increased number of people displaying entrepreneurial behaviors (Davidsson, 1995: 42; also see Shane, 1993: 67).…”

“…That is why a different strand of research is developing which deals with sociological indicators such as culture and institutions. Some of this research uses the indices developed by Hofstede to measure different dimensions of culture, including individualism, masculinity, uncertainty avoidance and power distance (Hofstede, Noorderhaven, Thurik, Uhlaner and Wildeman, 2004;Wennekers, Thurik, van Stel and Noorderhaven, 2005;Noorderhaven, Thurik, Wennekers and van Stel, 2004). Though less well known in the economics literature, an extensive literature in political science exists using an alternative cultural indicator, post-materialism, first coined by Inglehart (Abramson and Inglehart, 1999;Inglehart, 1977;Inglehart, 1990;Inglehart, 1992;Inglehart, 1997;Inglehart, 2000).…”