This paper extends the (Lucas, Bell J Econ 9:508-523,1978) model of occupational choices by individuals with different skills, beyond the simple options of self-employment or wage-employment, by including a second choice for the self-employed. That is, an option to hire employees and so become...

Occupational choice models predict that, ceteris paribus, countries with higher dispersion of skill will have higher market labour income inequality. However, an extended conclusion from empirical research is that cross-country variations in dispersion of skill explain little of the variation in...

The self-employed and entrepreneurs form a heterogeneous group: some individuals are pushed to become self-employed because they cannot find a job as employees, while others voluntarily choose self-employment to exploit business opportunities; among those who choose by opportunity, some hire...

This paper models the distribution of firm sizes as the market equilibrium from occupational choices made by rational individuals with different entrepreneurial skills. The model is calibrated to match Spanish data on the size of occupational groups (employees, employers, solo self-employed) and...

This paper examines the relationship between the dispersion of general skills in the working population, and inequality in the distribution of labor income that arises from the market equilibrium from occupational choices. In general, more skilled individuals earn higher labor income in the...

This paper examines income inequality as the market equilibrium from occupational choice of individuals with differential general skills, working as employees or as entrepreneurs, with or without employees. Income inequality in the equilibrium depends primarily on the dispersion of skills in the...

This paper extends the Lucas (1978) model of occupational choices by individuals with different skills, beyond the simple options of self-employment or wage-employment, by including a second choice for the self-employed. That is, an option to hire employees and so become self-employed with...