Entrepreneurship among Married Couples in the United States: A Simultaneous Probit Approach

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 21.06.2005, 12:15 - 13:30


Presentation by 

Simon C. Parker (Western University, Canada)


This article proposes a simultaneous probit equation framework to analyse the business ownership patterns of married couples in the United States. A structural model of knowledge spillovers within couples is formulated and estimated. We find evidence consistent with positive knowledge transfers between members of couples, but little support for alternative explanations based on assortative mating, role model, risk diversification, and wealth transfer effects. We conclude that the conventional practice of ignoring interdependence can generate misleading conclusions about the determinants of business ownership in America.

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