We document in two very different datasets an inverted U-shaped relationship between work experience and entrepreneurship among movers. The first dataset consists of 1,248, U.S. lawyers who were forced to seek alternative employment after the sudden dissolutions of their employers. The second...

We explore whether the tendency for smaller firms to have fewer hierarchical layers explains the well-documented inverse correlation between firm size and the rate at which employees become business owners. Our analysis is based on a Swedish matched employer-employee dataset. Conditional on firm...

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 of and accruals from assets, such as human capital. The second observation is that entrepreneurs enjoy higher returns to...