University of Oulu

Marko Korhonen, Rauli Svento & Mikko Vaaramo (2020) Self-employment and psychometric measure of risk aversion: a replication and extension, Applied Economics Letters, 27:9, 697-702, DOI: 10.1080/13504851.2019.1644429

Self-employment and psychometric measure of risk aversion : a replication and extension

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Author: Korhonen, Marko1; Svento, Rauli1; Vaaramo, Mikko1
Organizations: 1Department of Economics, University of Oulu, Oulu, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.2 MB)
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Language: English
Published: Informa, 2020
Publish Date: 2021-01-19


We examine whether the psychometric feature, called fear of uncertainty, predicts self-employment choice by individuals. Using the most recent Northern Finland birth cohort 1966 (NFBC1966) data from 2012, we find no clear evidence of such an effect. We also explore whether this effect might have changed due to increase of females in labour market, endogenous adaptation in risk preferences or because of the self-employment experience itself affects risk preferences. These effects are not significant, either.

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Series: Applied economics letters
ISSN: 1350-4851
ISSN-E: 1466-4291
ISSN-L: 1350-4851
Volume: 27
Issue: 9
Pages: 697 - 702
DOI: 10.1080/13504851.2019.1644429
Type of Publication: A1 Journal article – refereed
Field of Science: 512 Business and management
Funding: NFBC1966 received financial support from University of Oulu [Grant no. 24000692]; Oulu University Hospital [Grant no. 24301140]; ERDF European Regional Development [Fund Grant no. 539/2010 A31592].
Copyright information: © 2019 Informa UK Limited, trading as Taylor & Francis Group. This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters, on 19 Jul 2019 available online: