The fraction self-employed rises in recessions because wage work is more sensitivethan self-employment to the business cycle, not because of necessityentrepreneurship. Graduating during a recession reduces the probability of starting a business forthe next 11 years.

Training funds are used to incentivize training in developing countries, but the funds are based on payroll taxes that lower the return to training.  In the absence of training funds, larger, high-wage and more capital intensive firms are the most likely to offer training unless they are...

The availability of broadband Internet service should have increased firm productivity and lowered firm entry costs.  However, validating the broadband effect is complicated by the rapid deployment of broadband Internet service across metropolitan areas, removing meaningful variation in...

This study submits eleven business climate indexes to tests of their ability to predict relative economic performance on either side of state borders. Our results show that most business climate indexes have no ability to predict relative economic growth regardless of how growth is measured. ...

In Lazear (2005)’s model of entrepreneurship, individuals with more diverse academic and occupational training are more likely to become entrepreneurs, while more narrowly trained individuals become employees. We examine whether Lazear’s model can also explain which individuals...

Many developing countries have tried to increase firm provision of training by providing subsidies funded by taxes proportional to the firm’s wage bill.  These training funds, however, may backfire if the adverse effect of the tax on training incentives outweighs the positive effects of...

Sri Lanka's Termination of Employment of Workmen Act (TEWA) requires that firms with 15 or more workers justify layoffs and provide generous severance pay to displaced workers, with smaller firms being exempted. Although formally subject to TEWA, firms in Export Promotion Zones (EPZs) do not...

Since 1990, Taiwan increased the college share of its labor force from 7% to 28% by converting junior colleges to 4-year colleges.  Such a rapid surge in skill supply should suppress college wages and lower income inequality.  Instead, inequality rose steadily.  The surge of weaker college...

We test whether commonly used measures of agglomeration economies encourage new firm entry in both urban and rural markets.  Using new firm location decisions in Iowa and North Carolina, we find that measured agglomeration economies increase the probability of new firm entry in both urban and...