We develop entrepreneurship and institutional theory to explain variation in different types ofentrepreneurship across individuals and institutional contexts. Our framework generateshypotheses about the negative impact of higher levels of corruption, weaker property rightsand especially...

In contrast to the very large literature on skill-biased technical change among workers, thereis hardly any work on the importance of skills for the entrepreneurs who employ thoseworkers, and in particular on their evolution over time. This paper proposes a simple theory ofskill-biased change in...

We analyze empirically the effects of urban agglomeration on Italian college graduates’ workpossibilities as entrepreneurs three years after graduation. We find that each 100,000inhabitant-increase in the size of the individual’s province of work reduces the chances ofbeing an entrepreneur...

How valuable is education for entrepreneurs’ performance as compared to employees’?What might explain any differences? And does education affect peoples’ occupationalchoices accordingly? We answer these questions based on a large panel of US labor forceparticipants. We show that education...

We combine two empirical observations in a general equilibrium occupational choice model.The first is that entrepreneurs have more control than employees over the employment ofand accruals from assets, such as human capital. The second observation is thatentrepreneurs enjoy higher returns to...

This paper estimates an unobserved components model to explore the macro dynamics ofentrepreneurship in Spain and the US. We ask whether entrepreneurship exhibits hysteresis,defined as a macro dynamic structure in which cyclical fluctuations have persistent effects onthe natural rate of...

En los últimos años, se han realizado diversos estudios a nivel mundial utilizando el modelo de crecimiento y convergencia económica, a través de países y de regiones. Para el caso de México, hasta la segunda mitad de los noventas comienza el análisis empírico de la convergencia...

The paper proposes an alternative methodology for testing signalling hypothesis based on chances to get a job in a particular class of the job market. The individuals are ranked and matched by an external mechanism, based on preferences of employers in respect to actual observable and perceived...

Human capital plays an important role in the theory of economic growth, but it has been difficult to measure this abstract concept. We survey the psychological literature on cross-cultural IQ tests, and conclude that modern intelligence tests are well-suited for measuring an important form of a...

I study the consequences of heterogeneity of skills for the design of an optimal unemployment insurance, using a principal-agent set-up with a risk neutral insurer and infinitely lived risk averse agents. Agents, who are characterised by different productivities or skills, are employed by firms...