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SBE Lect 5_ Part 3: ch7 Global entrepreneurship Monitor (Theoretical…
SBE Lect 5_ Part 3: ch7 Global entrepreneurship Monitor
A brief history
Hoogendoorn, B., Rietveld, C.A., Van Stel, A. (2016). Belonging, believing, bonding, and behaving: The relationship between religion and business ownership at the country level. Journal of Evolutionary Economics, 26, 519-550.
A positive relationship
between religion and business ownership rate
A negative relationship
between religion and the average size of a businesses
Are relationship also present on individual level?
October 2017: Religiosity, entrepreneurial involvement and business size: The mediating role of risk aversion
May 2018: Social identity and occupational choice: Religiosity, values, and self-employment
November 2018: Religious identity and the choice of self-employment
Social identity
Social identity theory
: Add an individual’s identity or sense of self to utility maximization framework
Identification with a social category motivates behaviors consistent with prescriptions of “good” and “bad” behavior these categories provide
People make different choices when confronted with apparently similar situations of choice because of these prescriptions
A person’s identity is associated with different social categories (e.g., gender, ethnicity, religion, etc.)
Examples
People in these occupations who are of the opposite sex (i.e., male nurses or female soldiers) can experience disutility because of the need to fight against gender prescriptions of behavior
◦ Taken into account when making occupational choice
Actions from others could also influence one’s sense of self
◦ Males working in a “female” job might make female colleagues feel less “feminine”, and vice versa
Society sees some occupations as typically feminine or masculine, such as nurses and soldiers ◦ Being a female nurse or a male soldier fits with these societal expectations
Theoretical framework
Identity theory (Akerlof & Kranton, 2000): Utility Uj of individual j depends on individual j’s action aj and actions from others a-j, as well as j’s identity Ij: 𝑈=𝑈j(𝑎j ,𝑎_j,𝐼j)
(see slide 9/26)
Identity Ij is defined as:
see slide 9/26
for formula utility
Actions aj and a-j contribute also to Uj through Ij, depending on match with prescriptions of behavior P
P are the ideals of social category cj
Not important for this moment: Identity Ij is also the result of the match between individual
characteristics εj and the ideal of social category cj, as well the actual social status of category cj
Changes in utility due to Ij are called gains or losses in identity
Examples values at Erasmus slide 10/26
Empirical contribution
No direct tests of what connects the two, only speculations:
Social capital differences
Values
◦ “Criteria or broad life goals guiding an individual’s judgements, actions and behaviors” (Rokeach, 1969): The “prescriptions” in the Akerlof & Kranton model
Institutional factors
Are religion and self-employment connected through values?
◦ A specific implication of identity theory in the context of self-employment
Several studies find relation between religiosity and self-employment