Abstract
How the entrepreneurship rate changes with age and the business cycle has been theoretically and empirically studied. On the other hand, cohort effects have been mostly neglected in the literature. Cohort effects are intrinsic generation characteristics that follow individuals over their lifetime and the business cycles. We propose a methodology to differentiate between age, time (business cycle) and cohort effects in entrepreneurship. We find that time effects are highly correlated with GDP growth. Age effects show and inverse U shaped with maximum between 40 and 50 years. In Brazil, Mexico and Uruguay we find decreasing entrepreneurship in younger cohorts, and almost no change in Peru and Chile.
Appendix
Data sources
| Country | Survey | Source |
|---|---|---|
| Brazil | Pesquisa Nacional por Amostra de Domicilios | Instituto Brasileiro de Geografia e Estatística |
| Chile | Encuesta de Ocupación y Desocupación | Universidad de Chile |
| Mexico | Instituto Nacional de Geografía y Estadística | Encuesta Nacional de Ocupación y Empleo |
| Peru | Encuesta Nacional de Hogares | Instituto Nacional de Estadística e Informática |
| Uruguay | Instituto Nacional de Estadística | Encuesta Continua de Hogares |
Own elaboration
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Articles in the same Issue
- Entrepreneurial Orientation, Control Systems, and New Venture Performance: A Dominant Logic Perspective
- A Start-Up’s R&D Stages and the Evolution of Financing Sources: Evidence from the Biotechnology Industry
- Cohort, Age and Business Cycle Effects in Entrepreneurship in Latin America
- Trust Cognition of Entrepreneurs’ Behavioral Consistency Modulates Investment Decisions of Venture Capitalists in Cooperation
Articles in the same Issue
- Entrepreneurial Orientation, Control Systems, and New Venture Performance: A Dominant Logic Perspective
- A Start-Up’s R&D Stages and the Evolution of Financing Sources: Evidence from the Biotechnology Industry
- Cohort, Age and Business Cycle Effects in Entrepreneurship in Latin America
- Trust Cognition of Entrepreneurs’ Behavioral Consistency Modulates Investment Decisions of Venture Capitalists in Cooperation