Self-employment and psychometric measure of risk aversion : a replication and extension

Korhonen, Marko; Svento, Rauli; Vaaramo, Mikko (2019-07-19)
 
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https://doi.org/10.1080/13504851.2019.1644429

Korhonen, Marko
Svento, Rauli
Vaaramo, Mikko
Informa
19.07.2019

Marko Korhonen, Rauli Svento & Mikko Vaaramo (2020) Self-employment and psychometric measure of risk aversion: a replication and extension, Applied Economics Letters, 27:9, 697-702, DOI: 10.1080/13504851.2019.1644429

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© 2019 Informa UK Limited, trading as Taylor & Francis Group. This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters, on 19 Jul 2019 available online: http://www.tandfonline.com/10.1080/13504851.2019.1644429
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doi:https://doi.org/10.1080/13504851.2019.1644429
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https://urn.fi/URN:NBN:fi-fe2020070146578
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Abstract

We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might have changed due to increase of females in labour market, endogenous adaptation in risk preferences or because of the self-employment experience itself affects risk preferences. These effects are not significant, either.

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