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Research Institute of Industrial Economics (IFN) Working Paper Series

No 887:
Intelligence, Self-confidence and Entrepreneurship

Andrea Asoni ()

Abstract: I investigate the effect of human capital on entrepreneurship using the National Longitudinal Survey of Youth - 1979. I find that individuals with higher measured intelligence and self-confidence are more likely to be entrepreneurs. Furthermore I present evidence suggesting that intelligence and self-confidence affect business ownership through two different channels: intelligence increases business survival while self-confidence increases business creation. Finally, once we control for intelligence and self-confidence the effect of formal college education almost completely vanishes. These results are robust to controlling for selection into entrepreneurship and selection into college.

Keywords: Entrepreneurship; College Education; Intelligence; Self-confidence; (follow links to similar papers)

JEL-Codes: C41; J24; L26; (follow links to similar papers)

31 pages, October 24, 2011

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