Recent evidence on relative earnings from entrepreneurship versus wage work shows that after controlling for observable differences, entrepreneurs in most developed countries on average apparently earn less than employees. Does this mean that the choice of entrepreneurship should be encouraged...

We investigate how a large-scale French reform to reduce the risk from small business creation for unemployed workers, affects the composition of people who are drawn into entrepreneurship. New firms started in response to the reform are, on average, smaller, but have similar growth expectations...

This paper shows that collateral constraints restrict firm entry and post-entry growth, even in the long-run. The authors' empirical strategy uses French administrative data and exploits cross-sectional variation in local house-price appreciation as shocks to the value of collateral available to...