Opportunity costs and Entrepreneurial Activity Flashcards
What is the main thesis of the paper?
The lower the opportunity cost of individuals the more likely they are to undertake an entrepreneurial activity.
What is a characteristic of employees who chose to leave their job?
Earning substantially less than average than those who chose to remain paid employees.
How does alternative compensation impact entrepreneurial activities?
The larger it is, the less likely for the person to engage in entrepreneurial activities. This is independent of his ability or the level of risk aversion
How much people return to wage work?
50% return within 7 years and 0% by the 11th year mark.
What are some characteristics of entrepreneurs compared to paid workers?
Somewhat older
Better educated
More likely to be males and married
