The Quality of Entrepreneurs

Research output: Contribution to journalArticlepeer-review

52 Citations (Scopus)


What determines the quality of entrepreneurs? The paper proposes a model
of the interaction between individual workers’ decision to become entrepreneur 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. Using novel and unique Norwegian data, I find that previous employer size exertsa significant influence on entrepreneurial performance. For example, increasing previous employer size from the 25 percentile to the 75 percentile increases yearlyprofitability on assets by 6 percentage points.
Original languageEnglish
Pages (from-to)1010-1035
Number of pages26
JournalEconomic Journal
Issue number539
Early online date11 Jun 2009
Publication statusPublished - Jul 2009


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