NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Dinner Table Human Capital and Entrepreneurship

Hans K. Hvide, Paul Oyer

NBER Working Paper No. 24198
Issued in January 2018
NBER Program(s):Corporate Finance, Law and Economics, Labor Studies, Productivity, Innovation, and Entrepreneurship

We document three new facts about entrepreneurship. First, a majority of male entrepreneurs start a firm in the same or a closely related industry as their fathers’ industry of employment. Second, this tendency is correlated with intelligence: higher-IQ entrepreneurs are less likely to follow their fathers. Third, an entrepreneur that starts a firm in the same 5-digit industry as where his father was employed tends to outperform entrepreneurs in the same industry whose fathers did not work in that industry. We consider various explanations for these facts and conclude that “dinner table human capital”, where children obtain industry knowledge through their parents, is an important factor behind what type of firm is started and how well it performs.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

A non-technical summary of this paper is available in the April 2018 NBER digest.  You can sign up to receive the NBER Digest by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24198

Users who downloaded this paper also downloaded* these:
Asker, Collard-Wexler, and De Loecker w23801 Market Power, Production (Mis)Allocation and OPEC
Stansbury and Summers w24165 Productivity and Pay: Is the link broken?
Erel, Julio, Kim, and Weisbach w16941 Macroeconomic Conditions and Capital Raising
Dobbie, Grönqvist, Niknami, Palme, and Priks w24186 The Intergenerational Effects of Parental Incarceration
Song and Xiong w24230 Risks in China’s Financial System
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us