Empirical evidence shows that younger individuals are more likely to start a new firm than older ones. As a result, the age distribution of a population may be important for the rate of new firm creation. Building upon Becker's theory of time allocation, we present a model in which individuals select a career path according to the dynamic interplay of age, wealth and risk aversion. Our analysis complements existing literature on the motivations of entrepreneurial behavior and discusses the potential implications of age for individuals' employment status choices.
- Career choice
- Decision model
- Time allocation
ASJC Scopus subject areas
- Business and International Management
- Management of Technology and Innovation