Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/280272 
Year of Publication: 
2022
Citation: 
[Journal:] Industrial and Corporate Change [ISSN:] 1464-3650 [Volume:] 31 [Issue:] 3 [Publisher:] Oxford University Press (OUP) [Place:] Oxford [Year:] 2022 [Pages:] 736-761
Publisher: 
Oxford University Press (OUP), Oxford
Abstract: 
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.
JEL: 
J22
J23
L26
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)

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