entrepreneurship due to relative wealth concerns. A change in the profile of the economy to include more risk-averse people results in … an even greater increase in entrepreneurship. Thus, relative wealth concerns mitigate the reduction in entrepreneurship …We develop a model of occupational choice and entrepreneurship in which market frictions limit the possibilities for …

In the USA, the share of household wealth held by the richest 1% increased from 23.5% in 1980 to 41.8% in 2012. This … the economy. This shock can simultaneously match the increase in wealth concentration and the decrease of the saving rate …