We study the effects of ability and liquidity constraints on entrepreneurship. We develop a three sector Roy model that … on entry into entrepreneurship. The model predicts--and the data confirm--that entrepreneurs are positively selected on … positively selected on collateral, but other self-employed are not; and entrepreneurship is procyclical, but self-employment is …

soliciting the current client in the event of termination of employment. The socially optimal level of entrepreneurship will … are too restrictive and produce too little entrepreneurship, and governments can increase welfare by limiting enforcement …

entrepreneurship, and use it for comparative statics and welfare analysis. One welfare conclusion is that intermediaries may have …

"illicit" tendencies as youths accounts for both entry into entrepreneurship and the comparative earnings of entrepreneurs. In …