Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

2015

Journal or Book Title

IZA Journal of Labor Economics

Volume

4

Issue

9

First Page or Article ID Number

1

Last Page

27

DOI

10.1186/s40172-015-0023-7

Abstract

By allowing agents to switch from entrepreneurship to wage work and vice versa over the life cycle, this study proposes a dynamic Jacks-of-All-Trades (JAT) model where entrepreneurs invest in highly varied skills to manage their business. We simultaneously endogenize human capital investment and occupational decisions. Using the survey data of Iowa State alumni graduating between 1982 and 2006, we find that the probability of selecting a broad curriculum, having a more varied career, and becoming an entrepreneur are jointly positively correlated. Academic diversity is found to be initially important in starting a business shortly after completing schooling, but its importance declines over time.

JEL Classification

J24

Comments

This is an article from IZA Journal of Labor Economics 4 (2015): 1, doi: 10.1186/s40172-015-0023-7. Posted with permission.

Rights

This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited.

Copyright Owner

Orazem et al

Language

en

File Format

application/pdf

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