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Cite this article as: Cho and Orazem: Are nonprofit entrepreneurs also Jacks-of-all-trades? -
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- Publisher
- Springer Journals
- Copyright
- Copyright © 2014 by Cho and Orazem; licensee Springer.
- Subject
- Economics; Labor Economics; Population Economics
- eISSN
- 2193-8997
- DOI
- 10.1186/2193-8997-3-4
- Publisher site
- See Article on Publisher Site
Abstract
We investigate whether nonprofit and for-profit entrepreneurs share similar observable and unobservable skills. In JLE 23:649-680, 2005 ‘Jacks-of-all-Trades’ model of entrepreneurship, individuals with more diverse academic and occupational training are more likely to become entrepreneurs, while more narrowly trained individuals become employees. Data on college graduates from a single university show that observed diverse skills increase the probability that the graduate will open both for-profit and nonprofit venture. Positive correlation in the errors that jointly affect for-profit and nonprofit start-ups is consistent with the existence of an unobserved entrepreneurial skill, a key factor underlying Lazear’s theory.
Journal
IZA Journal of Labor Economics – Springer Journals
Published: Jul 24, 2014