In contrast to the very large literature on skill-biased technical change among workers, thereis hardly any work on the importance of skills for the entrepreneurs who employ thoseworkers, and in particular on their evolution over time. This paper proposes a simple theory ofskill-biased change in...

“Entrepreneurs out of necessity” identified by the Global Entrepreneurship Monitor survey area sizeable group across countries. They tend to have low education, run smaller firms, expecttheir firms to grow less, but are likely to stay in the market. This evidence is a challenge forexisting...

This paper analyzes the effect of firing costs on aggregate productivity growth. For thispurpose, a model of endogenous growth through selection and imitation is developed. It isconsistent with recent evidence on firm dynamics and on the importance of reallocation forproductivity growth...