A human capital-based model of choice between paidemployment and entrepreneurship is proposed, which can generate multipleoccupational equilibria. The model demonstrates how different rates ofentrepreneurship can exist in regions or countries that start from differentinitial conditions but...

The paper proposes a human capital-based model of choice between paid employment and entrepreneurship that can give rise to multiple equilibria in occupational structure. The model is consistent with evidence of pronounced, persistent, and hitherto unexplained regional variations in...