Standard economic theory predicts that firms will not invest in general training and will underinvest in specific … training. Empirical evidence, however, indicates that firms do invest in general training of their workers. Evidence from … laboratory experiments points to less underinvestment in specific training than theory predicts. We propose a simple model in …

boss but also direct others (their employees). We expect both types of self-employed, i.e., own-account workers and … work context (e.g., working conditions) compared to paid employees and hence to be more satisfied with their work …. Furthermore, we suspect that employers (who can delegate work to their employees and can help them to develop and grow) enjoy even …

How valuable are cognitive and social abilities for entrepreneurs’ incomes as compared to employees? We answer three … questions: (1) To what extent does a composite measure of ability affect an entrepreneur's earnings relative to employees? (2 … entrepreneurs and employees differently?, and (3) Does the balance in these measured ability levels affect an individual's earnings …