This paper draws on occupational choice theory to explain that observed differences in shares of entrepreneurs as self-employed across countries, may respond to differences in social capital as a support of generalized trust. With a (incomplete) panel data from 63 countries, for a period of 25...

This paper combines the theories on social capital and occupational choices to explain how social capital that saves on transaction costs and scale economies of skills in the production technology, determine the relative specialization between entrepreneurs-managers and markets in governing...