A new theory of entrepreneurial effort demonstrates that reducing liquidity constraints may retard the performance of the self-employed. A two dimensional empirical approach then distinguishes the impact of human and financial capital on both the number and performance of the self-employed. This...

Do workers benefit from the education of their co-workers? We investigate this question drawing on a panel of large Portuguese firms and their workers, using fixed effects and instrumenting average schooling in each firm-year with its lagged value and the lagged share of retirement-age workers....

We contribute to the literature on Foreign Direct Investment and labour markets by examining wage differentials between domestic and foreign firms, drawing on a large Portuguese matched employer-employee panel. Using OLS, the foreign-firm premium is large and significantly positive but falls...