Self-Employment after Socialism: Intergenerational Links, Entrepreneurial Values, and Human Capital

Michael Fritsch, Alina Rusakova
2012 Social Science Research Network  
Drawing on representative household data from the German Socio-Economic Panel, we examine the role of an early precursor of entrepreneurial developmentparental role models for the individual decision to become self-employed in the post-unified Germany. The findings suggest that the socialist regime significantly damaged this mechanism of an intergenerational transmission of entrepreneurial attitudes among East Germans with a tertiary degree that have experienced a particularly strong
more » ... indoctrination. However, we find a significant and positive relationship between the presence of a parental role model and the decision to become self-employed for less-educated people. For West Germans the positive relationship holds irrespective of the level of education. JEL classification: L26, Z1, D03
doi:10.2139/ssrn.2102480 fatcat:7ab2v4filjaz3c747zhtkktiwm