We investigate how individual factors moderate the impact of bankruptcy exemption levels—that is, the amount of wealth individuals can keep in case of bankruptcy—on entry into self-employment. Conceptually, we combine Prospect Theory’s axiom of diminishing sensitivity with insights from research on entrepreneurial failure. We hypothesize that individuals who face higher financial, social, or psychological costs because of bankruptcy will be less sensitive to higher exemption levels than will those who face lower costs across these dimensions. Our empirical results, which are based on a quasi-natural experiment in the United States, support our theoretical predictions.

中文翻译：

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破产监管和自雇进入：收入份额、父母身份和混合创业的调节作用

我们调查了个人因素如何调节破产豁免水平（即个人在破产情况下可以保留的财富数量）对进入自营职业的影响。从概念上讲，我们将前景理论的敏感性递减公理与创业失败研究的见解相结合。我们假设因破产而面临更高财务、社会或心理成本的个人对更高豁免水平的敏感度低于在这些方面面临较低成本的个人。我们基于美国准自然实验的实证结果支持了我们的理论预测。