Personality characteristics and the decision to hire
- As the policy debate on entrepreneurship increasingly centers on firm growth in terms of job creation, it is important to understand whether the personality of entrepreneurs drives the first hiring in their firms. Using the German Socio-Economic Panel (SOEP), we analyze to what extent personality traits influence the probability of becoming an employer. The results indicate that personality matters. Risk tolerance unfolds the strongest influence on hiring, shortening the time until entrepreneurs hire their first employee; the effect size of a one-standard-deviation increase in risk tolerance is similar to that of having a university degree. Moreover, individuals who are more open to experience, more conscientious, and more trustful are more likely to hire upon establishing their business.
Author details: | Marco CaliendoORCiDGND, Frank M. FossenORCiDGND, Alexander KritikosORCiDGND |
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DOI: | https://doi.org/10.1093/icc/dtab062 |
ISSN: | 0960-6491 |
ISSN: | 1464-3650 |
Title of parent work (English): | Industrial and corporate change |
Publisher: | Oxford University Press |
Place of publishing: | Oxford |
Publication type: | Article |
Language: | English |
Date of first publication: | 2021/10/04 |
Publication year: | 2021 |
Release date: | 2024/01/05 |
Volume: | 31 |
Issue: | 3 |
Number of pages: | 26 |
First page: | 736 |
Last Page: | 761 |
Organizational units: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften / Fachgruppe Volkswirtschaftslehre |
DDC classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Peer review: | Referiert |