This discussion paper resulted in a chapter in (L.P. Dana (Ed.)) <I>Handbook of Research on Ethnic Minority Entrepreneurship</I>, pp. 42-60, Edward Elgar Publishing, 2007.<P> Co-ethnic employment refers to the stylised fact of many labour markets that there is an over-representation of workers of the same...</p></i>

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...

We model entrepreneurship and the emergence of firms as a result of simultaneous bidding for labor services among heterogeneousagents. Unique to our approach is that occupational choices, jobmatching and organizational forms are determined simultaneously, sothat the opportunity costs of...