nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2011‒03‒26
five papers chosen by
Maximo Rossi
University of the Republic

  1. Personality Characteristics and the Decision to Become and Stay Self-Employed By Marco Caliendo; Frank M. Fossen; Alexander S. Kritikos
  2. Inequality Perceptions, Distributional Norms, and Redistributive Preferences in East and West Germany By Kuhn, Andreas
  3. Remittances and Income Smoothing By Amuedo-Dorantes, Catalina; Pozo, Susan
  4. Trends in the Transitory Variance of Male Earnings in the U.S., 1970-2004 By Robert Moffitt and Peter Gottschalk
  5. What drives women out of entrepreneurship? The joint role of testosterone and culture By Luigi Guiso; Aldo Rustichini

  1. By: Marco Caliendo; Frank M. Fossen; Alexander S. Kritikos
    Abstract: This paper systematically investigates whether different kinds of personality characteristics influence entrepreneurial development. On the basis of a large, representative household panel survey, we examine the extent to which the Big Five traits and further personality characteristics, which are more specifically related to entrepreneurial tasks, influence entry into self-employment and survival of self-employed persons in Germany. The empirical analysis reveals that among the specific characteristics in particular "risk attitudes" and "locus of control" have strong effects on entry and survival. With respect to the Big Five approach, in particular the traits "openness to experience" and "extraversion" and to a lower extent "agreeableness" and "neuroticism" help to explain entrepreneurial development. The explanatory power of the Big Five is comparable to one of the most prominent determinants of entrepreneurship - education - and approximately three times larger than parental selfemployment.
    Keywords: Entrepreneurship, Personality, Big Five, Risk Aversion, Locus of Control
    JEL: D81 J23 M13
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1113&r=ltv
  2. By: Kuhn, Andreas (University of Zurich)
    Abstract: This paper studies differences in inequality perceptions, distributional norms, and redistributive preferences between East and West Germany. As expected, there are substantial differences with respect to all three of these measures. Surprisingly, however, differences in distributional norms are much smaller than differences with respect to inequality perceptions or redistributive preferences. Nonetheless, individuals from East Germany tend to be more supportive of state redistribution and progressive taxation, and less likely to have a conservative political orientation, even conditional on having the same inequality perceptions and distributional norms.
    Keywords: subjective inequality indices, redistributive preferences, political preferences
    JEL: D31 D63 H50 J31
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5573&r=ltv
  3. By: Amuedo-Dorantes, Catalina (San Diego State University, California); Pozo, Susan (Western Michigan University)
    Abstract: Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse causality and endogeneity and find that while income smoothing does not appear to be the main motive for sending remittances in a non-negligible share of households, remittances do indeed smooth household income on average. Other variables surrounding income volatility are also considered and evaluated.
    Keywords: remittances, income smoothing
    JEL: F22 O15 O54
    Date: 2011–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp5568&r=ltv
  4. By: Robert Moffitt and Peter Gottschalk
    Abstract: We estimate the trend in the transitory variance of male earnings in the U.S. using the Michigan Panel Study of Income Dynamics from 1970 to 2004. Using both an error components model as well as simpler but only approximate methods, we find that the transitory variance started to increase in the early 1970s, continued to increase through the mid-1980s, and then remained at this new higher level through the 1990s and beyond. Thus the increase mostly occurred about thirty years ago. Its increase accounts for between 31 and 49 percent of the total rise in cross-sectional variance, depending on the time period.
    Date: 2011–02
    URL: http://d.repec.org/n?u=RePEc:jhu:papers:578&r=ltv
  5. By: Luigi Guiso; Aldo Rustichini
    Abstract: The ratio of second to fourth digit (2D4D) has been shown to correlate negatively with entrepreneurial skills and financial success. We document that in a sample of entrepreneurs women have a lower 2D4D ratio than men, in sharp contrast with the features of the distribution in random samples. Exploiting variation across communities in indices correlated with women emancipation, we show that in regions where women are less emancipated their average DR is lower than that of men compared to regions with higher indices. This finding is consistent with the existence of gender related obstacles into entrepreneurship so that only women with well above average entrepreneurial skills find it attractive to self-select into entrepreneurship. This finding can rationalize three facts: a) fewer women than men are entrepreneurs; b) the proportion of women among entrepreneurs tends to be higher in countries with higher women emancipation; c) women who break the barrier into entrepreneurship seem to show more masculine traits. We also find that once women enter entrepreneurship, they are equally able than man to translate their ability into outcomes for the firm.
    Keywords: Women emancipation, Entrepreneurial ability, Digit Ratio, Testosterone, Entrepreneurship
    JEL: L26 L21 L25
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:eui:euiwps:eco2011/02&r=ltv

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