Risk aversion and entrepreneurship : new evidence exploiting exposure to massive earthquakes in Italy / Guido de Blasio (Bank of Italy), Maria De Paola (University of Calabria and IZA), Samuele Poy (Catholic University of Milan, IRES Piemonte and University of Piemonte Orientale), Vincenzo Scoppa (University of Calabria and IZA) ; IZA Institute of Labor Economics
VerfasserDe Blasio, Guido ; De Paola, Maria ; Poy, Samuele ; Scoppa, Vincenzo
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, December 2018
Elektronische Ressource
Umfang1 Online-Ressource (30 Seiten) : Diagramme, Karten
SerieDiscussion paper ; no. 12057
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Risk aversion and entrepreneurship [0.79 mb]
Verfügbarkeit In meiner Bibliothek
Zusammenfassung (Englisch)

This paper investigates the impact of risk attitudes on the decision to become an entrepreneur. In contrast to previous research, we handle endogeneity issues relying on an instrumental variables strategy considering as a source of exogenous variation in risk aversion the early exposure to a massive earthquake. Using several waves of the Bank of Italy Survey of Household Income and Wealth (SHIW), we find that individuals experiencing an earthquake become significantly more risk averse. Second-stage estimates show that risk aversion has a significant negative impact on the probability of becoming an entrepreneur.