Abstract

The 2D: 4D digit ratio, the ratio of the length of the second finger to the length of the fourth finger, is often considered a proxy for testosterone exposure in utero. A recent study reported, among other things, an association between the left-hand 2D:4D and self-employment in a sample of 974 adults. In this preregistered study, we replicate the 2D:4D results on a sample of more than 2100 adults from the German Socioeconomic Panel-Innovation Sample (SOEP-IS). We find no statistically significant associations between 2D:4D and self-employment.

Highlights

  • Understanding the determinants of self-e­ mployment and entrepreneurship is important because entrepreneurs tend to innovate and prompt competition and thereby contribute to job creation and economic growth (e.g., Acs & Armington, 2006; Carree & Thurik, 2010; van Stel et al, 2005)

  • It has been argued that the combination of positive and null results could potentially be due to endogeneity between self-­ employment and testosterone since testosterone levels are not something fixed, but may react to, for instance, social context

  • In the preregistered exploratory analyses, we test if the association between 2D:4D and self-­employment differs between men and women, but we find no statistically significant gender difference supporting that pooling the data is appropriate

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Summary

Introduction

Understanding the determinants of self-e­ mployment (with and without employees) and entrepreneurship is important because entrepreneurs tend to innovate and prompt competition and thereby contribute to job creation and economic growth (e.g., Acs & Armington, 2006; Carree & Thurik, 2010; van Stel et al, 2005). There is an even larger literature exploring the association between testosterone, a sex steroid, and self-e­ mployment. Have explored circulating levels of testosterone with mixed results (e.g., Greene et al, 2014; Nicolaou et al, 2018; van der Loos et al, 2013; White et al, 2006).. Prenatal testosterone exposure in utero has been proposed to play a clearer causal role on self-e­ mployment through the impact of prenatal testosterone exposure on fetal brain development that in turn affects personality and preferences (Nicolaou et al, 2018). As explored further in the Discussion section, the evidence of this supposed link between prenatal testosterone exposure and 2D:4D is mixed

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