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Dinner table human capital and entrepreneurship

Author: Hans K Hvide; Paul E Oyer; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2018.
Series: Working paper series (National Bureau of Economic Research), no. 24198.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers’ industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers. Third, an entrepreneur that starts a firm in the same 5-digit industry as where his father was employed tends  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Hans K Hvide; Paul E Oyer; National Bureau of Economic Research,
OCLC Number: 1019876907
Notes: "January 2018"
Description: 1 online resource (57 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 24198.
Responsibility: Hans K. Hvide, Paul Oyer.

Abstract:

We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers’ industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers. Third, an entrepreneur that starts a firm in the same 5-digit industry as where his father was employed tends to outperform entrepreneurs in the same industry whose fathers did not work in that industry. We consider various explanations for these facts and conclude that “dinner table human capital”, where children obtain industry knowledge through their parents, is an important factor behind what type of firm is started and how well it performs.

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