This paper analyses the impact of a change in Australia’s immigration policy, introduced inthe mid-1990s, on migrants’ probability of becoming entrepreneurs. The policy changeconsists of stricter entry requirements and restrictions to welfare entitlements. The resultsindicate that those who...

An industry is modeled in which entrepreneurs, who are heterogeneous in ability, may produce formally or informally. It is shown how the formal-informal mix depends on the distribution of ability, product demand and various parameter values...