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Testosterone and the tendency to engage in self-employment

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Nicolaou, Nicos, Patel, Pankaj C. and Wolfe, Marcos T. (2018) Testosterone and the tendency to engage in self-employment. Management Science, 64 (4). pp. 1825-1841. doi:10.1287/mnsc.2016.2664 ISSN 0025-1909.

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Official URL: http://dx.doi.org/10.1287/mnsc.2016.2664

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Abstract

Does testosterone increase the tendency to engage in self-employment? The results presented to date have been mixed. Using three different studies, we provide additional evidence on the relationship between testosterone and self-employment. Drawing on a cross-section of 2,146 individuals (1,178 males and 968 females) from the National Health and Nutrition Examination Surveys’ (NHANES’) 2011-2012 sample, and controlling for endogeneity (with red blood cell count, percentage Hematocrit, and zinc supplements intake in the past 30-days as instruments), serum testosterone levels are positively associated with self-employment for males (marginally significant, two-tailed test). As testosterone levels could be affected by social, economic, and biological factors during one’s life course, to draw more robust inferences we assess whether the 2D:4D digit ratio, a marker of prenatal testosterone exposure, influences the likelihood of self-employment. We reviewed a sample of 971 cases (449 males and 525 females) from Understanding Society’s Innovation Panel 6 (IP6), and our results indicate that males (females) with lower 2D:4D ratio in their left hand, or higher prenatal testosterone exposure, have a significantly greater (marginally significant for females) likelihood of self-employment (two-tailed test). Finally, we examine the twin testosterone transfer effect in a sample of opposite-sex and same-sex twins from the National Survey of Midlife Development (MIDUS I) in the Unites States and provide additional support for the marginally significant (two-tailed test) positive association between testosterone and self-employment.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Q Science > QP Physiology
Divisions: Faculty of Social Sciences > Warwick Business School > Entrepreneurship, Innovation & Management
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Self-employed , Testosterone, Human behavior--Endocrine aspects
Journal or Publication Title: Management Science
Publisher: Institute for Operations Research and the Management Sciences (I N F O R M S)
ISSN: 0025-1909
Official Date: April 2018
Dates:
DateEvent
April 2018Published
3 March 2017Available
15 September 2016Accepted
Volume: 64
Number: 4
Page Range: pp. 1825-1841
DOI: 10.1287/mnsc.2016.2664
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 29 September 2016
Date of first compliant Open Access: 3 March 2018
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