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| Author: | Hvide, H.K. |
| Title: | The quality of entrepreneurs |
| Journal: | Economic Journal
2009 : JUL, VOL. 119:539 p. 1010-1035 |
| Index terms: | Norway companies entrepreneurship performance appraisal workers |
| Language: | eng |
| Abstract: | The topic of this paper is the quality of entrepreneurs. It presents a model of the interaction between individual workers' decision to become entrepreneurs and employers' efforts to keep their best workers and ideas. The main prediction from the model is that larger firms produce entrepreneurs of higher quality than smaller firms. Based on Norwegian data, it is found that previous employer size exerts a remarkable influence on entrepreneurial performance. For instance, increasing previous employer size from the 25 percentile to the 75 percentile increases yearly profitability on assets by 6 percentage points. |
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