Which role do individual income prospects play in the decision to be an entrepreneur rather than an employee? In a model of occupational choice, higher expected after-tax earnings attract people to self-employment, while more risky net earnings deter risk-averse individuals. In this paper I...

Persistent differences in the level of business ownership across economically developed nations have attracted the attention of scientific as well as political debate. Cultural rather than economic influences are assumed to play a decisive role. This paper deals with the influence of cultural...

External corporate financing typically involves contracts presenting a majority of the financial risks of the entrepreneurial activity on the entrepreneur. In academic literature, this one-sided risk allocation is usually justified by the informational advantages and unobservable actions of the...