start, the paper briefly documents evidence from the empirical literature that the relationship between entrepreneurship and … in the market, and that returns to entrepreneurship have a much larger cross-sectional variance than returns to wage work …. The paper shows that these facts can be explained in a model of occupational choice between wage work and entrepreneurship …

Entrepreneurs out of necessity identified by the Global Entrepreneurship Monitor survey are a sizeable group across …

a positive relationship between an individual's potential payoffs in working and in entrepreneurship. If some firms … consequence, the entrepreneurship rate falls with income per capita, average firm size and firm size dispersion increase with … income per capita, and entrepreneurship out of necessity falls with income per capita. The paper also documents, for two of …

Developing and emerging economies have high entrepreneurship rates and relatively many small firms. There is enormous … entrepreneurship at both edges of the size distribution. The model is then used to analyse the effects of productivity growth …, distortions, financial and labor market frictions, and risk. Capturing entrepreneurship across the size distribution allows for …

: the entrepreneurship rate and the fraction of small firms fall with per capita income across countries, while average firm …'s potential payoffs in working and in entrepreneurship. If some firms consistently benefit more from technological progress than …