Alphabetic name ordering on multi-authored academic papers, which is the convention in the

This paper proposes that risk aversion encourages individuals to invest in balanced skillprofiles, making them more likely to become entrepreneurs. By not having taken this possiblelinkage into account, previous research has underestimated the impacts both of risk aversionand balanced skills on...

There is no robust empirical support for the effect of financial incentives on the decision towork in self-employment rather than as a wage earner. In the literature, this is seen as apuzzle. We offer a focus on the opportunity cost, i.e. the wages given up as an employee.Information on income...

How valuable is education for entrepreneurs’ performance as compared to employees’?What might explain any differences? And does education affect peoples’ occupationalchoices accordingly? We answer these questions based on a large panel of US labor forceparticipants. We show that education...

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 ofand accruals from assets, such as human capital. The second observation is thatentrepreneurs enjoy higher returns to...