We find evidence in the OECD cross-country data to support the Knightian view that non-diversifiable economic risks shape equilibrium entrepreneurship in an occupational choice model. Differential social insurance of entrepreneurial and labor risk is found to be statistically significant and...

We analyze the potential role of adverse working conditions at the workplace in the determination of employees’ quit behavior. Our data contain both detailed information on perceived job disamenities, job satisfaction, and quit intentions from a cross-section survey and information on...

We examine how Sutton’s “bounds” approach works in a small country where industries have relatively high export and import intensities. Import competition is used as an indicator for the degree of competition in the low sunk cost industries. The bounds are estimated as stochastic...

This paper explores the potential role of adverse working conditions in the determination of workers’ sickness absences. Our data contain detailed information on the prevalence of job disamenities at the workplace from a representative sample of Finnish workers. The results from reduced-form...