We model entrepreneurship and the emergence of firms as a result of simultaneous bidding for labor services among … individual wages, but always raises the averagewage and depresses the average incomes of incumbent entrepreneurs- strictly so if …

entrepreneur) or to turn to dependent employment. We test our theory using a 10-year panel dataset (2001 to 2010) of more than 4 …

entrepreneurship is introduced, where individuals can choose not to work, become entrepreneurs, or work in one of the two sectors … to sector-specific wages and worker sorting across the two sectors. Individuals with lower assets tend to accept lower … entrepreneurship in the United States. …

the likelihood that he/she starts a business.Implications for entrepreneurship research and practice are discussed. …