Choosing between temporary services workers and long-term employees involves a tradeoff between flexibility and commitment. Temporary employees provide both a buffer against unforeseen shocks and a secondary internal labor market to preview employees prior to long-term hire. We use real options...

In contrast to previous efforts to model an individual's movement from wage work into entrepreneurship, we consider that individuals might transition incrementally by retaining their wage job while entering into self-employment. We show that these hybrid entrepreneurs represent a significant...