Senate Hall Academic Publishing


Click HERE for a sample entrepreneurship paper

NOTE: Since 2009 the title of the International Journal of Entrepreneurship Education (IJEE) has been changed to the title above.  ISSN numbers: IJEE 1649-2269 and IRE 2009-2822

Publications & Abstracts below

Listed by: Cabells, EBSCO, ARC, Cranfield, and Thomson-Reuters’ Web of Science ESCI citations index

Frequency: 4 Issues + 1 Hard Copy per year 

Notice: Undefined index: method in /var/www/vhosts/senatehall.com/httpdocs/_layouts/views/sub/article.view.php on line 8

The “Good Job” Trap: Opportunity Cost as a Deterrent to Immediate Venture Creation

IRE Vol 10, Issue 4: 2012, Pages 127-152

Author(s): Romi Kher, Deborah Streeter and David R. Just (Cornell University, USA)

Abstract:
This paper explores the relationship between opportunity costs and the decision to pursue entrepreneurship among undergraduates as their first career choice. Our hypothesis is that undergraduate students from highly ranked universities have strong financial incentives (the “good job” trap) that lead them to pursue traditional, corporate careers immediately upon graduation. Analysis of 235 recent graduates from an Ivy League university and a Big Ten university, adjusted for monetary costs, parental preferences and individual ability, shows that the Ivy League graduates are less likely to become entrepreneurs immediately upon graduation due to opportunity cost considerations. Students are also less likely to pursue an entrepreneurial career if they have multiple job offers and conversely, lack of quality job offers is a strong motivator for self-employment. We argue that it is in fact the sensible choice for students to choose salaried employment rather than venture creation immediately upon graduation, even when they harbor entrepreneurial plans for the future. These findings have implications for programmatic and resource allocation decisions at the university level.

Keywords: opportunity cost, venture creation, student ventures, entrepreneurship.

Purchase this Article

To purchase this article click the Add To Order button below. The paper will be delivered electronically as a watermarked PDF file with a licence to make the number of copies ordered. Delivery of the article to your email address will normally be within 24 hours of placing the order online. If you would prefer to post or fax your order then please CLICK HERE for a printable order form. If you experience any difficulties please email us at: orders@senatehall.com

If you wish to take out a yearly subscription to this journal CLICK HERE for prices and to order

Paper Pricing
USA and Rest of World
US Dollars($)
Europe
Euros (€)
Great Britain
Sterling (£)
Article Price
$95.00
€80.00
£60.00